Monday, February 3, 2014

Chinese online solutions provider entered into going private transaction

Ninetowns Internet Technology Group Company Limited, the company based in China and focused on providing online solutions for international trade, has entered into an agreement and plan of merger with Cayman Islands exempted companies with limited liability - Ninetowns Holdings Limited, and its wholly owned subsidiary Ninetowns Merger Sub Limited.

Ninetowns Holdings Limited is jointly owned by the Consortium, which includes the British Virgin Islands-incorporated companies Value Chain International Limited and Oriental Plan Developments Limited. The Consortium collectively beneficially owns approximately 31.4% of the outstanding shares of the company (excluding reserved shares and repurchased shares).

Pursuant to this agreement, Ninetowns Holdings Limited will acquire Ninetowns Internet Technology for US$1.80 per ordinary share. Upon the terms and subject to the conditions of the agreement, Ninetowns Merger Sub will be merged with and into Ninetowns Internet Technology Group, which will become the wholly owned subsidiary of Ninetowns Holdings.

The transaction is expected to close before the end of the second quarter of 2014. If completed, it will result in Ninetowns Internet Technology Group becoming a privately-held company and its ADSs will be delisted from the NASDAQ Global Market.