The company has received a letter containing a non-binding proposal in acquiring additional shares of Jakks common stock.
Hong Kong Meisheng is a wholly owned subsidiary of Meisheng Cultural and Creative Corp.
The Proposal states that it is subject to due diligence, and that Meisheng intends to fund the transaction through a combination of existing cash on hand and/or other financing sources to the extent required for the restructuring or refinancing of Jakks’ outstanding senior convertible senior notes.
The Expression of Interest also states that the transaction is subject to approval by Meisheng’s Board of Directors, shareholders, and Chinese regulatory authorities.
Hong Kong Meisheng currently owns 5,239,538 shares of Jakks common stock constituting 18% of Jakks issued and outstanding shares of common stock.
The Board of Directors of Jakks Pacific has authorised a Special Committee comprised solely of independent directors to evaluate the Expression of Interest. The Special Committee intends to engage independent legal counsel and an independent financial advisor to assist in its evaluation of the Expression of Interest.