Poshmark takeover: Naver POSH acquisition date, stock price and details in full
09:06, 4 October 2022
The Nasdaq-listed US fashion e-commerce giant Poshmark (POSH) is set to be acquired by a South Korean online platform Naver for some $1.2bn (£1.05).
The California-based company has recently become a target of short sellers after its shares got a beating following missed earnings estimates.
The deal spooked investors in Naver, whose shares fell almost 9% in the wake of the announcement. POSH shares, however, got a strong boost in pre-market trading - up 12.7% at $15.57 two hours before the US market open.
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Poshmark Inc (POSH) share price
Naver's offer; POSH shares
Naver’s offer to buy all the issued and outstanding shares of Poshmark for $17.90 in cash represents a 15% premium in share price compared to the previous day’s market close.
It also represents a 34% premium to the 30-day volume weighted average price, and a 48% premium to the 90-day volume weighted average price of Poshmark’s shares.
However, the shares are down 34% year on year and more than 81% during the last five years.
Global expansion
Poshmark’s founder and chief executive hailed the opportunity to expand into the Asian market, while Naver’s boss said his company's search capabilities will be able to take the American brand to global markets.
“This is a highly compelling opportunity for our employees, who will benefit from being part of a larger, global organisation with shared values and complementary strengths,” Poshmark's Manish Chandra commented in a statement.
Nasdaq Index price
“This transaction also delivers significant and immediate value to our shareholders.
“Longer term, as part of Naver, we will benefit from their financial resources, significant technology capabilities, and leading presence across Asia to expand our platform, elevate our product and user experiences, and enter new and large markets,” he added.
Naver's CEO Choi Soo-Yeon said: “Poshmark is the definitive brand for fashion in the United States that provides a social network for buying and selling apparel.
“Naver’s leading technology in search, AI recommendation and e-commerce tools will help power the next phase of Poshmark’s global growth.”
Acquisition date
The deal, which was unanimously approved by both Naver’s and Poshmark’s boards of directors, is expected to close by the first quarter of 2023, subject to approval by Poshmark stockholders.
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