Kit Digital's ex-CEO lowers offer price to take company private

Wed Dec 5, 2012 12:01pm EST

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(Reuters) - Kit Digital Inc's KITD.O former chief executive significantly lowered the price he was willing to pay to buy the video technology provider, citing the company's worsening liquidity and capital structure issues.

Former CEO Kaleil Isaza Tuzman said he had sent a letter to Kit Digital's board offering to buy the company at an indicative price range of $1.35 to $1.70 per share. At the mid-point of the offer price, the company is valued at $87.08 million.

This is more than double the company's current market value of about $40.93 million. Kit Digital shares were up 5 percent at 75 cents on the Nasdaq on Wednesday.

In November, Tuzman said he was willing to lead a private equity-backed buyout of the company at $3.75 per share in cash.

"Our offer is subject to due diligence, your release of certain parties from standstill agreements, and a mutually acceptable definitive agreement," Tuzman wrote in a letter to the company's board.

Kit Digital, which provides services to some of the biggest technology, entertainment and media companies, including Google Inc (GOOG.O), Disney-ABC and BBC, last month disclosed accounting irregularities and said it was considering exploring alternatives.

Tuzman, who left Kit Digital earlier this year in a major management shakeup, currently has an about 4 percent stake in the company, according to Thomson Reuters data.

(Reporting By Himank Sharma and Aurindom Mukherjee in Bangalore; Editing by Supriya Kurane)

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Comments (1)
Once upon a time there was aguy who didnt leave, he was pushed. his company was in a downward spiral long before then. all the issues were caused by his management team who all departed. and now rumours suggest that he is hiding out in columbia afraid to talk to the us authorities about the irregularities that are the cause of the current problems. leave the new management team to sort the crap out and let a great technical team continue to shine – thats where the value is and always has been in the companies this guy bought, plundered and mis-managed. as for me, i left, had to think of my family, but would gladly return, so long as the company is still in safe hands and not unfairly tainted by an unfortunate past that none of the current employees or management have anything to do with. certain people should shut up, sell their shares and go an ruin their own lives for a change

Dec 05, 2012 2:43pm EST  --  Report as abuse
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