Establishment of a Special Committee to Evaluate Privatization Proposals of $16 per ADS

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[Abstract] The Special Committee consists of three independent directors, Liu Erhai, Yu Long and Jun Hou, with Liu Erhai as its chairman.
Tencent Technologies News (TENX: BITA) announced Thursday that its board of directors had set up a special committee of three independent directors to evaluate Tencent Holdings Ltd. and Hammer Capital’s initial non-binding privatization proposals on September 12, 2019, according to foreign media.
The Special Committee consists of three independent directors, Liu Erhai, Yu Long and Jun Hou, with Liu Erhai as its chairman. In addition, the Special Committee employs Skadden, Arps, Slate, Meagher & Flom LLP as its legal adviser in the United States.
According to Tencent Holdings and Black Horse Capital’s privatization proposal submitted last week, the buyer plans to buy all the issued common shares of the car-changing company that it has not yet held with cash of $16 per American Depository Stock (ADS). At present, Tencent owns about 7.81% of the shares in EV, which is its sixth largest shareholder, while Black Horse Capital does not hold any shares in EV.
Yi Che was founded in 2000 by Li Bin and others. It was listed on the New York Stock Exchange in 2010. It is the first automobile Internet company listed in the United States. As of March 31 this year, the top three shareholders are Jingdong, Cox Automotive Global Investments and Li Bin, chairman of Yiche, with 25.4%, 12.8% and 11% shares respectively.
In the second quarter of this year, Yiche’s revenue was 2.79 billion yuan ($406.6 million), an increase of 8.9% over the same period last year. The net loss was 136.2 million yuan ($8.8 million), compared with 27.4 million yuan ($4 million) of net profit in the same period last year. The net profit was RMB 216 million yuan (about 31.5 million US dollars) and RMB 353.7 million yuan (about 51.5 million US dollars) in the same period of last year. (Compilation/Breeze)