Why Is Smart Share Global Stock Surging Premarket On Monday?

Benzinga
01-06

Smart Share Global Limited (NASDAQ:EM) shares are trading higher premarket on Monday. The company disclosed that its board had received a preliminary non-binding proposal from a buyer group, including Trustar Capital and key executives, to take the company private.

The offer is for $0.625 per ordinary share or $1.25 per ADS in cash, representing a 74.8% premium to the stock’s last closing price.

The proposed deal values the company significantly above its recent trading averages.

Smart Share Global’s Board has established a special committee comprising of three independent directors to evaluate the buyout proposal.

The committee will appoint independent financial and legal advisors to support its review.

The board cautions that no decisions have been made regarding the proposal.

As of June 30, 2024, the company had cash and cash equivalents, restricted cash, and short-term investments of RMB3.2 billion ($440.9 million). 

Price Action: EM shares are up 52.4% at $1.09 premarket at the last check Monday.

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