Dangdang, 'China's Amazon', and YY receive privatisation offers from executives
Chinese e-commerce firm Dangdang has received a buyout offer from executives, the company said on Thursday, the latest in a series of Chinese businesses to discuss privatisation.
According to a statement, the buyout group includes board chairwoman Peggy Yu Yu and chief executive Guoqing Li. Both executives are already major shareholders in the company. The transaction would value the New York-listed Dangdang at about US$630 million.
Yu and Li offered US$7.812 in cash per American depositary, a 20 per cent premium on the most recent trading price.
Also receiving a privatisation offer this week was social messaging and video platform YY. Chairman Jun Lei and chief executive David Xueling Li proposed to buy all remaining shares they didn't control for US$68.50 per American depository share.
The deal would value YY at around US$3.7 billion.
Both offers come after a host of similar proposals involving Chinese companies, including JA Solar Holdings, 21Vianet Group, and Renren, or "China's Facebook".
US-listed Chinese firms have been involved in far more going private offers this quarter compared to the first part of 2015, when five approaches were made, according to Deal Point Data.