Goodbaby International (HKG:1086) said Crystal Aurora International has proposed to privatize the company through a scheme of arrangement, offering HK$1.50 in cash for each scheme share, according to a joint announcement.

The offer values the maximum cash consideration for the scheme and share option offer at about HK$1.32 billion.

The HK$1.50 cancellation price represents a 38.89% premium to the company's last closing price of HK$1.08.

If the scheme becomes effective, Goodbaby will withdraw its shares from the Hong Kong Stock Exchange.

The offeror will finance the transaction through loan facilities arranged by HSBC, with its financial adviser confirming sufficient resources are available.

Certain existing shareholders, including Liu Tongyou, Martin Pos and Silvermount, a company wholly owned by Liu, will retain their stakes under a rollover arrangement. The rollover shareholders collectively hold about 7.01% of Goodbaby's issued shares.

The proposal remains subject to shareholder, court and regulatory approvals and other conditions.

Shares of the firm were up over 22% in recent trade.