Toy company Jakks Pacific has rejected a $670 million buyout offer from Oaktree Capital Management, Reuters reported Wednesday. Oaktree sent a letter to Jakks in mid-September outlining the $20-per-share offer. Malibu, Calif.-based Jakks called the bid “inadequate.”
(Reuters) – Toymaker Jakks Pacific rejected Oaktree Capital Management’s proposal to take the company private, calling the $670 million bid “inadequate.”
On Sept. 13, Oaktree had sent a letter to Jakks outlining an offer to buy the company for $20 a share in cash.
“The board unanimously believes that this is not the right time to sell the company,” Jakks Pacific said in response to Oaktree’s letter.
The company also said Oaktree was trying to take advantage of adverse macro-economic conditions in order to buy Jakks below its intrinsic value.
Shares of the Malibu, California-based company were down 2 percent at $17.09 late on Wednesday on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Maju Samuel)