Grand can't complete Wham-O deal
By Staff -- Playthings, 5/14/2008 9:08:00 AM
HONG KONG—Grand Toys International today announced the termination of its agreement to acquire 100 percent of Wham-O Inc. from Cornerstone Strategic Management Limited, a company owned and controlled by the wife of Grand Toys’ major shareholder, Jeff Hsieh.
Grand said it has been “unable to secure sufficient investor interest in the related fund-raising to proceed towards closing the acquisition in current market conditions.” Its proposed transaction was subject to the successful completion of convertible bond fund-raising activities to fund the purchase price, among other more mundane milestones.
The company says it is evaluating its strategic options with respect to its remaining businesses—specialty toy maker/importer International Playthings Inc. and party goods maker Kord Holdings Inc.—which include the option to sell one or both of these businesses.
