Charm Communications Inc., a leading advertising agency group in China with particular focus on TV and internet, announced that it has received a preliminary non-binding proposal letter from Mr. He Dang, the chairman of company’s board of directors, Merry Circle Trading Limited, a British Virgin Islands-registered company controlled by Mr. Dang, another BVI company, Honour Idea Limited, owned by Mr. Dang, and CMC Capital Partners HK Limited.
According to the proposal letter, dated September 30, 2013, the companies are to acquire all of the outstanding shares of Charm Communications, which are not currently owned by the above named BVI companies, in what should be a “going private” transaction, at a price of US$4.70 per ADS of the Chinese company, or US$2.35 in cash per Class A ordinary share of the company, and US$2.35 in cash per Class B ordinary share of the Company.
The company’s board of directors has formed a special committee of independent directors to consider the preliminary proposal. The committee intends to retain advisors to assist in the evaluation of the proposal.
