Dallas, Texas 07/14/2015 (Financialstrend) – E Commerce China Dangdang Inc (ADR) (NYSE:DANG) board of directors has approved the names of three independent directors that are to analyze a non-binding go-private proposal that the company received on July 9, 2015. Ms. Ruby Lu is to chair the three-member committee also made of Ke Zhang and Mr. Xialong Li. The team plans to institute a team of independent legal and financial advisors expected to assist in the evaluation process.
No Decision Reached
The committee comes into being chairwoman of the board Ms. Yu Yu and chief executive officer Quoting Li having tabled a non-binding proposal to take E Commerce China Dangdang Inc (ADR) (NYSE:DANG) private. The two plan to acquire all the outstanding shares of the company not owned by them or their affiliates
The board has already cautioned shareholders that no decision with regards to the transaction has been made and that there is no definitive assurance that a definitive offer will be made. If an offer is tabled and accepted, then E Commerce China Dangdang Inc (ADR) (NYSE:DANG) is to join a list of other Chinese companies that have opted to go private. Analysts believe that most of these companies will eventually end up being listed on China’s A-share market.
Chinese Companies Exit
Chinese video streaming operator YY Inc. has already announced plans to go private having received an offer from chairman Lei Jin and CEO Li Xueling. The deal reportedly values the company at $3.69 billion. E Commerce China Dangdang Inc (ADR) (NYSE:DANG) push to go private comes on the heels of US-listed Chinese companies receiving a beating in the market in the wake of a slump that has hit hard the Chinese stock market.
Most of the Chinese companies listed in the US have underperformed compared to their counterparts back at home despite the ongoing turmoil in the A-share market. Beijing-based E Commerce China Dangdang Inc (ADR) (NYSE:DANG) has shed more than 40% in terms of its share price from highs achieved on June 17.