China’s E-House delists from NYSE
12 Aug 2016
E-House (China) Holdings (NYSE: EJ), one of the leading real estate services companies in China, completed the merger with E-House Merger Sub Ltd., a wholly-owned subsidiary of the parent company, on Aug. 12.
The move amounts to a delisting of the company’s American depositary shares from the New York Stock Exchange as it goes private, possibly in preparation for a new listing in China, where the company feels investors better understand its value.
The move came as no surprise, following the vote of the extraordinary general meeting of shareholders on August 5 to approve the terms of the merger agreement announced on April 15.
As a result of the merger, all of the company’s ordinary shares have been cancelled in exchange for the right to receive $6.85 U.S. per share, and all of the company’s American depositary shares have been cancelled in exchange for the right to receive $6.85 U.S. per ADS, in each case, in cash, without interest and net of any applicable fees and withholding taxes.
However, certain shares beneficially owned by Zhou Xin, the co-chairman of the board of directors and chief executive officer of the company, as well as by Kanrich Holdings, On Chance and Jun Heng Investment (each controlled by Zhou), Neil Shen Nanpeng, a member of the board of directors of the company, Smart Create Group and Smart Master International (each controlled by Shen), and SINA Corporation, have been cancelled with no payment.
E-House requested that trading of its ADS’s on the New York Stock Exchange (NYSE) be suspended before the market opens on August 15.
The company’s obligation to file with, or furnish to the SEC certain reports and forms, will be suspended immediately.
For further details go here.