Baishi Group to Be Privatized, Transaction Details and Market Response

By:Maxwell Published 2024-06-20T09:48:58Z

TapTechNews June 20th news, Baishi Group announced today that it has signed a privatization merger agreement with the buyer group, and the acquisition price is $2.88 per ADS (American Depositary Shares), with an equity value of approximately $54.2 million (about 283.94 million yuan currently).

Baishi Group to Be Privatized, Transaction Details and Market Response_0

The acquisition price represents a 25.2% premium over the closing price of Baishi Group on the trading day before receiving the privatization offer, and premiums of approximately 30.9% and 28.7% over the closing prices of the past 15 and 30 trading days, respectively, and a 25.2% premium over the closing price on the trading day before the signing of the merger agreement (that is, June 18).

According to the agreement, the transaction is expected to be completed in the third quarter of 2024. After the transaction is completed, Baishi Group will be delisted from the New York Stock Exchange and become a private company wholly owned by the parent company. Baishi Group founder, chairman, and CEO Zhou Shaoning will continue to be the controlling shareholder, while the main shareholder structure remains unchanged.

TapTechNews found that as of June 18, the share price of Baishi Group was $2.3 and the market capitalization was about $46.22 million (TapTechNews note: about 261.96 million yuan currently).

In November last year, NYSE-listed Baishi Group released an announcement that the company's board of directors received an initial non-binding privatization proposal. This proposal came from Baishi Group founder, chairman, and CEO Zhou Shaoning, company chief strategy and investment officer Zhou Shaojian, and several Baishi Group shareholders including Alibaba and Cainiao.

This privatization proposal once caused market speculation: Is Alibaba and Cainiao going to acquire Baishi? TapTechNews learned from informed sources that this speculation is a big misunderstanding. The actual situation is that Baishi Group intends to delist from the NYSE through privatization, which is just a routine action of the major shareholder to cooperate with the delisting, and Alibaba and Cainiao have no intention to take over Baishi.