Ninetowns (NINE) Gets $1.80 - $2/Share 'Go Private' Proposal
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Ninetowns Internet Technology Group Company Limited (NASDAQ: NINE) ("Ninetowns" or the "Company"), one of China's leading providers of online solutions for international trade, today announced that its Board of Directors has received a preliminary non-binding proposal letter, dated October 12, 2012, from certain directors and officers of the Company, including Mr. Shuang Wang, Ms. Min Dong, Mr. Xiaoguang Ren, Mr. Kin Fai Ng, Mr. Bolin Wu, Mr. Zhonghai Xu, Mr. Tommy Siu Lun Fork and affiliates of some of these directors and officers (together, the "Consortium Members"), that proposes a "going-private" transaction involving the acquisition of all of the outstanding ordinary shares of the Company not already owned by the Consortium Members at a price per share in the range of US$1.80 to US$2.00 in cash (the "Transaction"). Each American depositary share of the Company represents one ordinary share.
According to the proposal letter, the Consortium Members will form an acquisition vehicle for the purpose of pursuing the Transaction, and the Transaction is intended to be financed with a combination of cash from the resources of the Company, its subsidiaries and the acquisition vehicle to be formed by the Consortium Members, as needed. A copy of the proposal letter is attached hereto as Exhibit A.
The Company's Board of Directors has formed a special committee of independent directors (the "Special Committee") consisting of Mr. Martin Cheung, Mr. Da Chun Zhang and Mr. Mark Ming Hsun Lee to consider the Transaction. The Special Committee is authorized to retain financial, legal and other advisors to assist it in its review of the Transaction. Paul Hastings LLP is acting as the Company's U.S. counsel and Ropes & Gray is acting as U.S. counsel to the Consortium Members.
According to the proposal letter, the Consortium Members will form an acquisition vehicle for the purpose of pursuing the Transaction, and the Transaction is intended to be financed with a combination of cash from the resources of the Company, its subsidiaries and the acquisition vehicle to be formed by the Consortium Members, as needed. A copy of the proposal letter is attached hereto as Exhibit A.
The Company's Board of Directors has formed a special committee of independent directors (the "Special Committee") consisting of Mr. Martin Cheung, Mr. Da Chun Zhang and Mr. Mark Ming Hsun Lee to consider the Transaction. The Special Committee is authorized to retain financial, legal and other advisors to assist it in its review of the Transaction. Paul Hastings LLP is acting as the Company's U.S. counsel and Ropes & Gray is acting as U.S. counsel to the Consortium Members.
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