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