HUYA Inc – ADR (NYSE: HUYA) has disclosed information about the termination of its merger with DouYu International Holdings Ltd (NASDAQ: DOYU).
SAMR initiated move through a posted announcement
The whole thing had to do with the State Administration for Market Regulation of the People’s Republic of China prohibiting the proposed merger between the companies mentioned above. SAMR posted the announcement in July this year.
Huya had to walk out of the merger deal, considering that it respects and abides fully with the SAMR directive. It has also indicated that it will conform to all the regulatory requirements.
Huya has termed the new state of affairs inevitable, outlining that it has to conduct its businesses in conformity with all the applicable laws and regulations. It was previously that the board of directors approved the company’s cash dividend in an aggregate amount of $200 million.
Details about the termination
The amount in question was to be paid upon the termination of the merger. The terms provided that the payment had to take place before 20 days elapsed from the date of termination, but this was for the holders of ordinary shares with their names stipulated on Huya’s register of members.
Huya’s board of directors had to abide by the terms for the termination of the merger, and they felt compelled to cancel the Cash Dividend.
Linen Investment Limited has, on the other hand, struck a termination agreement with Mr. Rongjie Dong. It was back in July that they signed the termination deal that involved a Share Transfer Agreement. As a result, linen bought off Huya’s 1,970,804 Class B ordinary shares, most of them belonging to the affiliates of Mr. Rongjie Dong.
Everything had to be terminated as per the terms of the agreement. The contemplated ancillary agreements ran to a halt with immediate effect.