Poshmark pricing in Naver deal under investigation
Poshmark's sale to South Korean tech firm Navers Corp. is under investigation as of Tuesday, with pricing terms of the $1.2 billion deal under scrutiny from two U.S. law firms.
Following the news on Monday that the social commerce fashion platform had been acquired by Navers for $17.90 a share ($1.2 billion), both New York's Weiss Law and Milwaukee-based Ademi Law said they are investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Poshmark, in relation to the pricing of Poshmark's shares as part its sale to the Korean giant.
"Weiss Law is investigating whether Poshmark's board of directors acted in the best interests of company shareholders in agreeing to the proposed transaction, the $17.90 per-share merger consideration adequately compensates Poshmark's shareholders, and all information regarding the sales process and valuation of the transaction will be fully and fairly disclosed," said the law firm, in a press release.
Ademi added that is believes Poshmark's financial outlook and prospects are "excellent," and highlighted the fact the Poshmark holders will "receive only" $17.90 in cash (per share), as part of the recently announced deal.
"The transaction agreement unreasonably limits competing bids for Poshmark by imposing a significant penalty if Poshmark accepts a superior bid," said Ademi, reiterating that Poshmark is not considering other offers.
"Poshmark insiders will receive substantial benefits as part of change of control arrangements."
Both firms also prompted current shareholders of Poshmark to make contact regarding their respective investigations and to pose any questions they have concerning the deal.
On Monday, Poshmark said it has been acquired by Navers Corp for $1.2 billion.
The news comes on the back of Poshmark's Nasdaq stock exchange debut in January, 2021, which saw Poshmark's shares rise 140% to $101.50 a share on its first day of trade, valuing the company at $7 billion.
Since then, the company's shares have plummeted by almost 80%, hit by uncertain macroeconomic activity in the U.S. that has made many investors bearish. As of October 4, Poshmark shares sat at $17.61.
Copyright © 2022 FashionNetwork.com All rights reserved.