AutoNavi Holdings Limited (AMAP: Quote), a provider of digital map content and navigation and location-based solutions in China, announced Friday that it agreed to be acquired by an affiliate of Alibaba Group Holding Limited, a global e-commerce leader and the largest e-commerce company in China, for $5.25 in cash per ordinary share or $21.00 in cash per American depositary share or ADS. The deal values AutoNavi's equity at about $1.5 billion.
The price represents a premium of 27.0% over the Company's closing price of $16.54 per ADS on February 7, 2014, the last trading day prior to February 10, 2014, the date that the Company announced it had received a "going private" proposal from Alibaba.
The transaction is currently is expected to close in the third quarter of 2014.
AutoNavi's board approved the merger agreement and the transaction and recommends that the Company's shareholders vote to authorize and approve the merger agreement and the transaction.
Alibaba beneficially owns about 78.43 million shares in AutoNavi (representing 28.2% of the total outstanding shares of the Company as of March 31, 2014) in the form of ordinary shares and series A convertible preferred shares, and has entered into a voting agreement with certain AutoNavi shareholders under which they will vote up to approximately an additional 26.2% of the total outstanding shares of the Company as of March 31, 2014) in favor of the transaction.
If completed, the transaction will result in the Company becoming a wholly-owned subsidiary of Alibaba, and its ADSs will no longer be listed on Nasdaq.
by RTT Staff Writer
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