Alibaba.com Ltd.'s (ALBCF.PK) Independent Board Committee and the Committee-appointed independent financial advisor have concluded that the privatization proposal is fair and reasonable as far as independent shareholders are concerned and recommended that they vote in favor of the proposal.
The proposal offers minority shareholders HK$13.50 per share in cash, impling a 60.4 percent premium over the 60-day average closing price of Alibaba.com shares before the privatization announcement on Feb 21; a 55.3 percent premium over the 10-day average closing price; and a premium of 45.9% over the closing price of Alibaba.com shares on the last trading day before the Feb 21 announcement. Alibaba Group would not increase the offer price.
The company said that a major factor driving Alibaba Group's decision to privatize its publicly traded unit is to provide minority shareholders with an opportunity to realize their investment in Alibaba.com at a significant premium over the current market price, while Alibaba.com implements a shift in its business strategy.
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by RTT Staff Writer
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