Ninetowns Internet Technology Group Co. Ltd., one of China’s leading providers of online solutions for international trade, Friday 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. Each American depositary share of the Company represents one ordinary share.
According to the proposal received by Ninetowns, the Consortium Members will form an acquisition vehicle for the purpose of pursuing the transaction. Ninetowns states that the transaction will be financed with a combination of cash from its resources, 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.
To consider the proposed transaction, Ninetowns’ 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. The Special Committee has been 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.
Ninetowns has addressed its shareholders and others considering trading in its securities, reaffirming that the proposal is non-binding and that the company has just received the initial proposal and no official decisions have been made with respect to the company’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed, or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to the Transaction or any other transaction, except as required under applicable law.
For more information on Ninetowns, visit www.ninetowns.com
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