CDC Corporation Withdraws Proposal to Onyx.ATLANTA -- CDC See Control Data, century date change and Back Orifice. CDC - Control Data Corporation Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHINA) (website: www.cdccorporation.net) today announced that it has withdrawn its proposal for a proposed strategic transaction involving a combination of CDC Software with Onyx onyx (ŏn`ĭks), variety of cryptocrystalline quartz, differing from agate only in that the bands of which it is composed are parallel and regular. Software Corporation. While CDC Corporation continues to believe that a strategic combination would be highly complimentary, would generate substantial synergies and optimize value for both CDC Corporation and Onyx shareholders, it has now concluded that it would be prudent to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: its pursuit of a business combination between CDC Software and Onyx. The execution risks of the proposed transaction are heightened given the circumstances including the lack of receptiveness by Onyx's management and board and uncertainty of the Onyx business prospects. CDC is therefore unwilling to offer a cash or share premium to the Onyx shareholders at this time given that the valuation is already significantly higher than when CDC first approached Onyx with its proposal. "We appreciated that some of Onyx's largest shareholders took the time to listen to our proposal and we found the dialogue very helpful. However, given the circumstances and our inability to have discussions with any of Onyx's board members, we have reluctantly decided that it is time to move on and we will now examine other options and opportunities to grow and improve the operating fundamentals of CDC Software as part of our continuing effort to unlock value for our shareholders," stated Mr. Steven Chan, Acting CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , CDC Corporation. "As part of this initiative, we have recently announced our purchase of the assets of JRG JRG joint review group (US DoD) JRG Junta Revolucionaria de Gobierno (Revolutionary Governing Junta; El Salvador) JRG Jim Roberts Group Software Inc., a leader in on-demand supply chain planning solutions delivered as Software as a Service and we have commenced discussions for several other complimentary and accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. ." "In today's rapidly consolidating enterprise application market place, we believe that there will be complimentary enterprise software providers whose board and management will have the vision to see the logic of creating a clear market leader with a strong global customer base and product offering," continued Mr. Chan. "A combination with CDC Software will bring size, scale, breadth of product line and financial viability to any potential partner, given CDC Corporation's net cash balance of US$212.5 million." About CDC Corporation CDC Corporation (NASDAQ:CHINA) is focused on enterprise software, mobile applications and online games. As part of its strategic review, the company has reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. into two primary operating business units, CDC Software and China.com Inc. For more information about CDC Corporation, please visit the website: http://www.cdccorporation.net. About CDC Software CDC Software, the software unit of CDC Corporation, offers a broad range of software solutions for mid-sized enterprises. These products are utilized by approximately 4,000 customers worldwide. For more information about CDC Software, please visit the website: www.cdcsoftware.com. Cautionary Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release includes "forward-looking statements" within the meaning of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the effects of corporate restructurings and strategic initiatives at the company, anticipated consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of a strategic transaction, and further actions to be taken following consummation of such a transaction. These statements are based on management's current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, including the following: whether any anticipated strategic initiatives are ever consummated; the final structure of any proposed transaction; the ability to realize strategic objectives by taking advantage of market opportunities in targeted geographic markets; the ability to make changes in business strategy, development plans and product offerings; the ability to integrate operations or new acquisitions in accordance with the company's business strategy; and the effects of restructurings and rationalization of operations. Further information on risks or other factors that could cause results to differ is detailed in filings or submissions with the United States Securities and Exchange Commission made by CDC Corporation in its Annual Report for the year ended December 31, 2004 on Form 20-F/A filed on October 11, 2005. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward-looking statements whether as a result of new information, future events or otherwise. CDC Corporation (NASDAQ:CHINA) |
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