Cheer Holding Inc. (NASDAQ:CHR) shares skyrocketed 95% in premarket trading Wednesday after the mobile internet infrastructure company announced it had received two non-binding acquisition proposals from separate entities.
One offer came from Zhongsheng Dingxin Investment Fund Management, an existing shareholder, proposing to acquire all outstanding Class A ordinary shares for $0.56 per share in cash. A second proposal was submitted by Excel Ally Ventures Limited, offering $0.52 per share.
In response, Cheer Holding’s Board of Directors said it will establish a special committee of independent directors to review both offers and explore other strategic alternatives. The committee will be authorized to retain independent financial advisors and legal counsel to support its evaluation process.
The company stressed that the Board has only just received the proposals and has not made any decisions regarding them. Cheer Holding also cautioned that there is no assurance any definitive offer will emerge or that a transaction will ultimately be completed.
The sharp premarket surge highlights investor enthusiasm over the potential buyout bids, which represent a substantial premium compared to Cheer Holding’s recent trading levels. The firm added it will provide no additional updates on the proposals except as legally required.