(Reuters) – Sogou Inc said on Tuesday it would be taken private by shareholder Tencent Holdings Ltd for $9 per share in cash, valuing the Chinese web search firm at about $3.5 billion.
U.S.-listed shares of the company were up about 3% in premarket trading.
The offer price represents a premium of 56.5% to Sogou’s close on July 24, the last trading day before the Chinese tech giant sent a preliminary offer to take it private.
The move comes a day after Chinese social media platform Weibo’s owner Sina Corp said it would be taken private in a $2.6 billion deal.
Many Chinese companies are exiting U.S. stock exchanges by considering go-private deals or returning to equity markets closer to home on rising tensions between the world’s two largest economies.
(Reporting by Ayanti Bera in Bengaluru; Editing by Ramakrishnan M.)
