BVI-based Yucheng Technologies Limited entered into an agreement and plan of merger with New Sihitech Limited, wholly-owned by Yucheng’s Chairman and CEO Mr. Weidong Hong, and with New Sihitech Acquisition Limited, wholly-owned by the the New Sihitech Limited. Both companies are registered in the British Virgin Islands.
Under the terms of the merger agreement, each of the ordinary shares of Yucheng Technologies will be cancelled in exchange for the right to receive US$3.90 in cash, without interest, with some exceptions.
BVI-based New Sihitech Limited intends to finance the merger through a combination of proceeds in the amount of US$48 million from an exchangeable notes subscription agreement with affiliates of China Everbright Investment Management Ltd., and an equity commitment of US$3.594 million by Mr. Hong.
The close of the merger is anticipated before the end of the fourth quarter of 2012. When the merger will be completed, Yucheng Technologies will become a privately-held company, and its shares will be delisted from the NASDAQ Global Select Market.
