China’s Qunar to go private in deal valuing firm at US$4.4bn
Company is second US-listed Chinese digital travel services provider to be taken private after eLong in June
Digital travel services giant Qunar is set to go private in a merger with Ocean Management Holdings, a deal that the Nasdaq-listed Chinese company said puts its value at US$4.4 billion.
The transaction marked the second major Chinese online travel company trading on the Nasdaq stock market to be targeted for privatisation this year, following eLong’s merger with China E-Dragon Holdings in June.
Beijing-based Qunar said on Wednesday that its undisclosed merger consideration represents a premium of about 15 per cent to the closing price of the company’s American depositary shares on June 22, the last trading day prior to its receipt of a “going-private” proposal.
On that date, Qunar’s share price reached US$26.42. The company’s shares advanced 0.70 per cent to close at US$28.95 in trading on Tuesday in the United States.
Ocean Management is an investment vehicle controlled by Alex Zheng Nanyu, the co-founder of Chinese budget hotel chain operator 7 Days Group Holdings.
Qunar’s merger with Ocean Management is expected to close in the first half of next year, subject to customary closing conditions including shareholders’ approval.
Under the terms of their deal, each ordinary share of Qunar issued and outstanding will be cancelled in exchange for the right to receive US$10.13 in cash without interest.
