Chen Ou’s second attempt to privatize jumeiyoupin for $20 per ads

0
96

[Abstract] in the past 52 weeks, jumeiyoupin’s lowest share price was $1.65, and its highest share price was $18.64. At Friday’s closing price, jumeiyoupin is worth about $200 million.
Tencent technology news according to foreign media reports, Jumei Youpin (NYSE securities code: jmei) announced on Sunday that the board of directors of the company had received the non binding preliminary proposal issued by Chen ou, chairman, chief executive officer and acting chief financial officer of the company and its related companies on January 11, 2020. According to the proposal, the buyer’s group will use cash to purchase all outstanding ordinary shares of jumeiyoupin, including American Depository Receipts, which are not held by him and his affiliates, at a price of US $20 per ads.
After the completion of the above transaction, jumeiyoupin will become a private company owned by Chen ou, and the company’s ADR will be delisted from the New York Stock Exchange.
Jumeiyoupin said it had set up a special committee composed of independent directors Sean Shao and Adam J. Zhao to consider the proposed and proposed transaction. The special committee retained Hogan Lovells as its U.S. legal counsel to review and evaluate the proposal and the proposed transaction. Jumeiyoupin reminded investors that the board of directors had just received the proposal and had not made any decision on the proposal and the proposed transaction. There is no guarantee that the buyer group will make any final offer to the company, that any final agreement will be entered into between the company and the buyer group in connection with the proposal, or that the proposed transaction or any other similar transaction will be approved or completed.
Jumeiyoupin shall have no obligation to provide any updates related to this transaction or any other transaction, unless required by applicable law.
Jumeiyoupin was founded in 2010 and listed on NYSE on May 16, 2014. In February 2016, jumeiyoupin received the privatization proposal submitted by Chen ou, Dai Yusen, vice president of products, Sequoia Capital, and other shareholders, and planned to purchase jumeiyoupin shares at a price of $7 per ads. However, on November 27, jumeiyoupin announced that the special committee of the board of directors of jumeiyoupin had received the notice letter from the privatization buyer group, and announced to withdraw the non binding privatization plan submitted on February 17, 2016 and take effect immediately. As for the withdrawn privatization offer at that time, Jumei Youpin explained in an interview: “withdrawing the privatization offer is a strategic choice based on the current business development and diversified transformation progress of the company after more than a year of careful consideration and analysis. After withdrawing the privatization offer, more attention will be paid to the diversified layout. In the future, it is hoped that the industry chain of “online e-commerce + offline hardware + big data” will be opened, and the “moat” of Jumei business will be dug in
Jumeiyoupin announced on January 1 that the company plans to adjust the ratio between American Depository Receipts and class a common shares, from 1 American Depository Receipts representing 1 class a common share to 1 American Depository Receipts representing 10 class a common shares. The company expects changes in the ADR ratio to take effect on January 10, 2020. Jumeiyoupin said changes in the ADR ratio would not result in the issuance of new ADRs.
Jumeiyoupin shares closed Friday at $17.43 in regular trading on the New York Stock Exchange, down 5.78%. In the past 52 weeks, jumeiyoupin’s lowest share price was $1.65, while its highest share price was $18.64. At Friday’s closing price, jumeiyoupin is worth about $200 million. (compiled by Tencent technology / Mingxuan)