Chinese Real Estate Portal SouFun Advances Deal to Acquire Controlling Stake in Wanli.
19 July 2016 - Chinese real estate Internet portal SouFun Holdings Ltd. (NYSE: SFUN) has advanced its proposed acquisition of a controlling stake in Chongqing Wanli New Energy Co., Ltd. and the sale of Chinese storage battery company Wanli's assets, the company said.
On 18 July, the company announced that Wanli had advised the company that it had submitted an application for withdrawal of the application materials on the restructuring to the China Securities Regulatory Commission considering that the relevant parties were unable to submit the required supplementary materials to the CSRC in a timely manner due to the workload.
Wanli further advised the company that it would resubmit updated application materials to the CSRC in due course.
The consummation of the restructuring remains subject to the requisite internal approvals of the relevant parties and regulatory clearance, including by the CSRC.
Under the share subscription agreement, SouFun Holdings has agreed to subscribe through each of the Fang subsidiaries for new shares of Wanli at a price of RMB 23.87 per share, equal to 90% of the average trading price of Wanli's shares in the 20 trading days immediately before the public announcement of the resolutions of Wanli's board of directors approving the transactions contemplated by the restructuring.
In exchange of the subscription shares, the company has agreed to transfer through the Fang subsidiaries to Wanli the entire equity interests in five wholly-owned subsidiaries of the Fang subsidiaries that operate as the company's service platforms for online media business, Internet financial services, and big data business.
The subscription shares will be calculated based on a final valuation of the Fang assets by an independent asset appraisal company. The current preliminary valuation of the Fang assets is RMB 16.18bn (USD 2.46bn).
Wanli has also entered into an asset sale agreement with Shenzhen Nan Fang Tong Zheng Investment Co., Ltd. the controlling shareholder of Wanli, and Xicheng Liu, pursuant to which Wanli has agreed to sell all of its existing non-cash assets and liabilities to the asset sale buyer and maintain at least RMB 0.7bn cash in Wanli.
Fang operates a real estate Internet portal in China. Through its websites, the company provides marketing, e-commerce, listing and other value-added services for China's fast-growing real estate and home furnishing and improvement sectors.
Founded in 1992, Wanli is a manufacturer of storage batteries.
Target: Chongqing Wanli New Energy Co
Buyer: SouFun Holdings Ltd
Deal size in USD: 2.46bn
Type: Corporate Acquisition
Financing: Cash and Stock
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Jul 19, 2016|
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