Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Exceed Co. Gets Proposal From CEO-led Consortium To Be Taken Private

8/19/2013 9:50 AM ET

Hong Kong-based Exceed Company Ltd. (EDS: Quote) said Monday said that it has received a preliminary, non-binding proposal from a consortium led by its chief executive officer to be taken private for $1.72 per share in cash. The sportswear company's shares are gaining more than 7 percent in the regular trading session.

Exceed designs, develops and engages in wholesale of footwear, apparel and accessories under its own brand, Xidelong, in China. The company noted that the buyers' consortium includes its chairman and chief executive officer Shuipan Lin and his affiliates - including Tiancheng Int'l Investment Group Limited, HK Haima Group Limited, Wisetech Holdings Limited, Windtech Holdings Limited and RichWise International Investment Group Limited.

The consortium has offered to acquire all of the outstanding ordinary shares of Exceed not currently owned by them for $1.72 per ordinary share in cash, as part of a going-private transaction. The offer price represents a 15 percent premium to Exceed's closing stock price of $1.49 on Friday, August 16, 2013.

As of August 17, 2013, the consortium members owned about 66.5 percent of the total outstanding ordinary shares of the company.

In response, Exceed's board has formed a special committee consisting of independent non-executive directors Jin Jichun, Chen Yea-Mow and Pang Xiaozhong, to consider this proposal. Jin will be the chairman of the special committee, which will retain a financial advisor and legal counsel to assist it in its work.

Exceed's board has cautioned the company's shareholders and others considering trading in its securities that the board has just received the non-binding proposal from the consortium. The board also said that no decisions have been made by the special committee with respect to the company's response to the proposal.

In Monday's regular trading session on the Nasdaq, EDS is trading at $1.60, up $0.11 or 7.38 percent on a volume of 6,280 shares.

Register
To receive FREE breaking news email alerts for Exceed Company Ltd. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Housing starts in the U.S. showed a notable increase in the month of March, according to a report released by the Commerce Department on Wednesday, although starts still came in well below economist estimates. The report showed that housing starts climbed 2.8 percent to an annual rate of 946,000 in March from the revised February estimate of 920,000. After moving mostly higher over the course of the two previous sessions, stocks may see some further upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 63 points. The U.K. unemployment rate fell below the 7 percent threshold to a five-year low in February and average earnings finally moved above inflation reducing the squeeze on household finances. The jobless rate came in at 6.9 percent of the labor force, the lowest since February 2009, data from the Office for National Statistics showed Wednesday.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.