DouYu International Holdings Limited [NASDAQ: DOYU] released the official statement regarding its merger with Huyu. The firm has disclosed that it has ended the merger agreement talks with Huyu. Earlier, the State Administration for Market Regulation of the People’s Republic of China, or the SAMR, forbid the suggested merger between HUYA Inc. and DouYu International Holdings Limited on July 10, 2021, after SAMR’s antitrust review.
After the antitrust review, DouYu disclosed that it has decided to fully follow the decision of SAMR and also fulfill all the regulatory conditions. The firm considered that it is the firm responsibility to carry out its businesses in compliance with the relevant laws and rules and fulfill its social obligations.
Hence, as per the SAMR Decision, on July 12, 2021, Huya, Tiger Company Ltd., a fully-owned business unit of Huya, DouYu, and Nectarine Investment Limited, a fully owned business unit of Tencent Holdings Limited inked a termination agreement, in accordance with which the Agreement and Plan of Merger, dated October 12, 2020, as dismissed without any delay.
Moreover, DouYu earlier disclosed that, in compliance with the terms of the Merger Agreement, its board of directors authorized a cash dividend in an aggregate amount of US$60,000,00. The dividend is to be paid on or around the date of the execution of the Merger and in no later than 20 days after the execution of the Merger to the holders of ordinary shares of DouYu whose names appear on DouYu’s register of members as of the close of business on certain record date after the date when the mandatory DouYu shareholder authorization is obtained and before the execution of the Merger.