Cloopen receives $2.96 per ADS going-private proposal from CEO and partner

Cloopen Group Holding Limited (OTC: RAASY) announced December 24 that its board received a preliminary non-binding proposal to take the company private. The proposal came from CEO and founder Changxun Sun and Trustbridge Partners VII, L.P., dated December 22.

The buyer group proposed acquiring all outstanding Class A and Class B ordinary shares not already owned by them for $0.4940 per ordinary share, or $2.9641 per American depositary share, in cash. Each ADS represents six Class A ordinary shares.

The proposed price represents a 51.23% premium to the company's closing price on the last trading day before the proposal date. It also represents premiums of 74.87% and 86.22% to the volume-weighted average closing prices during the 15 and 30 trading days prior to the proposal, respectively.

The buyer group values the company at approximately $155.92 million. The group currently owns about 20.32% of outstanding ordinary shares and controls approximately 53.98% of voting power.

Cloopen's board plans to form a special committee of independent directors to evaluate the proposal. The committee expects to retain independent financial and legal advisors to assist in the review process.

The board cautioned shareholders that it has not yet reviewed or evaluated the proposal. The company stated there is no assurance that any definitive offer will be made, agreement executed, or transaction approved or completed.

Cloopen operates as a cloud-based communications solution provider in China, offering services including communications platform as a service, cloud-based contact centers, and unified communications and collaborations.

The information is based on the company's press release statement.

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