Leading Chinese real estate services company E-House Holdings, which owns a 70 per cent stake in property platform Leju, has entered into a definitive merger agreement which will make it a private company.
Expected to take place in the second half of 2016, E-house China Holdings will merge with its subsidiary E-House Merger Sub Ltd, effectively terminating its responsibilities with the New York Stock Exchange including the obligation to file periodic reports.
E-House investor Xin Zhou, which owns a 24 per cent stake in the company along with Neil Nanpeng Shen and SINA Corporation will provide equity financing of approximately US$325.0 million to facilitate the merger and pay other fees and expenses.
The E-House buyer group also says it intends to fund the merger through a combination of a committed loan facility of $350 million and a cash consideration equal to US$6.85 per ordinary share and American Depository Share (ADS) of the company.
For shareholders, the merger will render each of their outstanding shares cancelled in exchange for the right to receive US$6.85 per Share or ADS, in cash, without interest and net of any applicable withholding taxes.
Based on the recommendation of a special independent committee it formed, the E-house board of directors says it has unanimously approved the merger and is resolved to recommend shareholders also vote to go ahead with the transaction.
The Buyer Group, which currently owns approximately 44.9 per cent of the outstanding Shares in E-house also says it has agreed to vote this stock in favor of the authorization and approval of the merger.
E-House is a leading real estate services company in China that has been listed on the New York Stock Exchange since 2007.
It offers a diverse scope of real estate online services through Leju, a leading online-to-offline (O2O) real estate services provider in China, brokerage and marketing services, real estate information and consulting services, real estate financial services and community value-added services.
With a market capitalization around $934.16 Million E-House China’s earnings before interest, tax, depreciation and amortization (EBITDA) remained 35.26 million for the past 12 months.
Most recently the stock climbed +4.30 per cent while traded on 3.96 million shares versus it’s an average volume of 691.17 thousand shares. The company recorded the last trade with the price of $6.55. The stock price changed hands in a range of $6.48 to $6.58.
E-House (China) Holdings Limited’s price volatility for a month noted as 1.68 per cent however its price volatility for a week documented as 1.11 per cent.
The corporation holds 142.17 million outstanding shares with 115.21 million shares floated in the market. The stock established a positive trend of 4.30 per cent in last week and indicated rise of 3.48 per cent in the previous month.
The current consensus among analysts is to buy stock in E-House China Holdings Ltd. This rating has held steady since the beginning of April, when it was unchanged from a buy rating, according to CNN money.