New York Stock Exchange listed Chinese electricity supplier company Dangdang in the voices of dissent in the privatization plan will move forward one step. From the current situation of management, Dangdang is far lower than the issue price of the privatization plan objection attitude of the small shareholder, did not make a very effective blocking.
low privatization approved by shareholders
Dangdang announced on September 12th, the shareholders voted to approve the privatization agreement proposed by the chairman of the group Yu Yu and CEO of the buyer group composed of. Announcement shows that about 97.7% of the voting rights of the stock holders to support the agreement.
at the end of May announced the details of the transaction, the management of buyers will be on a per depositary price of $6.7 acquisition of all shares issued dangdang.com cash. After privatization is completed, Li Guoqing and his wife will be more than of the total shareholding of more than 9.
The final price of $6.7
did not reach the higher prices of other buyers proposed, even lower than the management of buyers proposed in July last year for $7.8 per depositary. Dangdang listed on the NYSE in 2010, the listing price of $16, the final privatization price is only 4 of the listed price.
prior to the announcement, the management of the buyer group to reduce the privatization offer made an explanation:
first, China’s electricity supplier market is increasingly fierce, Dangdang market share has been eroded, affecting its operations and financial performance. Second, the changes in the global financial market makes the stock price is affected, a long time will bring uncertainty to the stock price, price privatization will help shareholders quickly realized. Third, China’s macroeconomic situation is not good, the pressure of devaluation, the stronger the dollar makes the cost of privatization.
in the September 12th vote, the reason why such a low price of privatization is still able to get a large proportion of voting rights, largely due to the huge voting rights held by management.
investor Zhong Rixin said in the paper, the double voting system allows the American capital market, making Li Guoqing and Yu Yu couple can be held by the 35.9% Dangdang shares, get up to 83.5% of the voting rights of capital operation this high proportion of voting rights will dominate dangdang.
Zhong Rixin Beijing Amy Valley Cci Capital Ltd partners; the company in the Cayman I stocks Asset Management Limited (iMeigu Capital Management Ltd.) are closely related, the latter has a low offer in Dangdang management group after the buyer, out of the privatization offer higher prices, in an attempt to prop up share prices and profits.
for privatization offer Dangdang shareholder approval management buyer group, as of press time, Amy Valley Tencent finance yet to respond to requests for comment.
objection retail or unable to stop the agreement approved
, however, I is not the first U.S.