Opera Limited buys back 20.6% of shares from 360 Security Technology Inc

[silversurfer]

Norwegian company Opera Limited announced that it intents to buy back all of its shares from Chinese company 360 Security Technology Inc. in an all cash transaction. The purchase would move 20.6% of shares from 360 Security Technology Inc. back to Opera Limited.

Opera Limited put up an offer of $128.6 million in cash for the 46.75 million ordinary shares that 360 Security Technology Inc. holds currently. The purchase price equals $5.50 per ADS (American Depositary Share) , as the ordinary shares that 360 Security Technology Inc. holds equal 23.375 million ADS.

Opera Limited representatives have come to an agreement with "its pre-IPO shareholder Qifei International Development Co. Ltd., a wholly owned subsidiary of 360 Security Technology Inc.", to acquire the entire shareholding. The transaction is subject to the approval of "360's shareholders at a shareholder meeting". The meeting is scheduled for October 10, 2022.

Opera Limited develops the Opera web browser and other Internet consumer products. Opera browser, the Opera brand name and other assets associated with the browser were sold to a Chinese consortium in 2016 for $600 million.

Opera Software went public on the NASDAQ stock exchange in 2018. Opera shares trade at $4.08 currently.

360 Security Technology Inc. is a member of a Chinese consortium that purchased the Opera browser and name in 2016. Kunlun Tech Limited and Keeneyes Future Holding Inc held sizable shares of Opera Limited in 2018 as well.

The purchase of more than 20% of stocks gives Opera Limited more control over its own future, if the deal goes through. Privacy advocates criticized Opera Limited for making the initial deal in 2016, fearing that it give Chinese companies too much control over the Opera web browser and data.

We reached out to Opera to find out more about the current shareholder structure, especially in regards to other members of the Chinese consortium, which purchased shares in the company before the IPO in 2018. It is unclear if Opera Limited has the intention to buy back shares from other members of the consortium as well.

Opera Limited buys back 20.6% of shares from 360 Security Technology Inc - gHacks Tech News

Norwegian company Opera Limited announced the intention to buy back all of its shares from the Chinese company 360 Security Technology Inc.

www.ghacks.net

 

[upnorth]

Better late then never? I don't know, but I do know why the deal was done in the first place as otherwise Opera couldn't have entered NASDAQ. NASDAQ has very hard rules on for example owner structures. Opera where very open and transparent in their investor documents at that time and they where moved officially to the Cayman Islands for pure investor reasons. The main office in Oslo Norway is also for certain business rules they can't avoid. All that info is available on their investor site.

It is a pretty good offer from Opera, and it will be interesting to follow and see what happens on 10th of October. If it gets rejected won't be the best for the brand.

 

[upnorth]

Oct 10, 2022, 08:00 ET

Opera Limited (NASDAQ: OPRA) ("Opera"), one of the world's major browser developers and a leading internet consumer brand, today announced that the shareholders of 360 Security Technology Inc. (601360:CH) (hereinafter, "360") have approved the previously announced share repurchase agreement between Opera and its pre-IPO shareholder Qifei International Development Co. Ltd., a 360 subsidiary. Following the transaction, 360 will no longer be a shareholder in Opera.

360 shareholders vote 'yes' on repurchase agreement with Opera

/PRNewswire/ -- Opera Limited (NASDAQ: OPRA) ("Opera"), one of the world's major browser developers and a leading internet consumer brand, today announced that...

www.prnewswire.com

 

[Paul.R]

Opera being very transparent about papers, especially for NASDAQ and still are people complying about their privacy and how a big spy this browser is.

 

[mlnevese]

You get used to paranoia in security forums... from people deploying so many layers of protection that make their computers nearly unusable to people spending thousands of dollars on corporate level protection hardware...

 

[Stopspying]

I used Opera as an alternative to Firefox prior to them becoming Chinese owned, I stopped using it when this happened. I quite liked it although I never used it as a primary browser, my main use of it was when I found that a small number of websites seemed to load and perform better with it to how they did on Firefox. Please don't ask what sites they were, I've visited one or two URLs since those days and my memory needs an upgrade

From what I know now of where Opera stands currently I'm reluctant to take it for a test drive. How do we know what code may have been added by, or for, the sellers?

 

[Paul.R]

Opera being very transparent about papers, especially for NASDAQ and still are people complying about their privacy and how a big spy this browser is.

Update about company structure: (after I did a research about it)

Opera is a Norwegian company whose main shareholders are Chinese, whose focus is on Africa and has been listed as an ADR in the USA. This constellation harbors a certain lack of transparency. In particular, the listing as an ADR is associated with further risks. Since Opera chose this VIE (Variable Interest Entity) structure, it is negotiated according to the jurisdiction of the Cayman Islands. In principle, the investors own only a company shell to which Opera's assets and profits have been transferred. This legal construct has not yet been approved by the government in China. If the conflicts between the USA and China intensify in the next few years, the shares could possibly become completely worthless.

 

[upnorth]

Update about company structure: (after I did a research about it)

Opera is a Norwegian company whose main shareholders are Chinese, whose focus is on Africa and has been listed as an ADR in the USA. This constellation harbors a certain lack of transparency. In particular, the listing as an ADR is associated with further risks. Since Opera chose this VIE (Variable Interest Entity) structure, it is negotiated according to the jurisdiction of the Cayman Islands. In principle, the investors own only a company shell to which Opera's assets and profits have been transferred. This legal construct has not yet been approved by the government in China. If the conflicts between the USA and China intensify in the next few years, the shares could possibly become completely worthless.

I always love when people do their own research, but I'm curious about the added " quote ". Do you mind also add the source link for that?

 

[Paul.R]

Sure, I posted it late at night and forget to add source

Spoiler: Source

 

[upnorth]

Sure, I posted it late at night and forget to add source

Spoiler: Source

Aha, thanks but I would much rather recommend for anyone that's interested to research these links :

https://investor.opera.com/news-and-events/financial-news

https://investor.opera.com/sec-filings

https://investor.opera.com/corporate-governance/governance-overview

There's more on their main page ( investor.opera.com ), in the top header if one is interested. Stock charts etc.