Headlines By

CBK Digest, June 4, 2015

Taomee Receives Going Private Proposal; Mindray Receives Going Private Offer; SINA CEO to Purchase $456M in Shares; Qunar Announces Offering of ADS; ChinaNet Receives Modest Investment; Pingtan Declares Dividend; Xiu.com Raises $30M

[CBK Digest is published for email subscribers first, then posted on CBK’s website. To sign up for to receive the email version, see box in the right hand corner of the website.]


Taomee Receives Going Private Proposal
The board of Shanghai-based Taomee Holdings Ltd. (NYSE: TAOM) received a management -backed “going private” proposal on June 1, 2015, from Mr. Benson Haibing Wang, a director and the CEO, Mr. Roc Yunpeng Cheng, a director and the president of the company, and Orient Securities Ruide (Shanghai) Investment Management Co., Ltd., a subsidiary of Orient Securities Company Ltd. The group is offering a price of US$0.1794 in cash per ordinary share of the company or US$3.588 in cash per ADS. The company’s board has formed a special committee consisting of three independent directors, Mr. JP Gan, Mr. Shengwen Rong and Mr. Ted Lai, to consider this proposal. Rong is appointed as the chair of the Special Committee. Founded in 2007, Taomee produces children’s entertainment via TV, animated box office movies, books, consumer products, toys and trading cards, online gaming, as well as mobile. It debuted on the NYSE in June of 2011.

Further Reading:
SEC Filing: Form 6-K (June 1, 2015)

Mindray Receives Going Private Offer
Shenzhen-based Mindray Medical International Ltd. (NYSE: MR) received a management-backed “going private” proposal on June 4, 2015, priced at $30 per ADS. The buyer group includes: Mr. Li Xiting, Executive Chairman of the Board, President and Co-CEO, Mr. Xu Hang, Chairman of the Board, and Mr. Cheng Minghe, its Co-CEO and Chief Strategic Officer. Mindray is a developer of medical devices. It has offices in Shenzhen, China and Mahwah, NJ.

SEC Filing: Form 6-K (June 5, 2015)


SINA CEO to Purchase $456M in Shares
Shanghai-based SINA Corp. (Nasdaq: SINA) entered into an agreement with its Chairman and CEO, Mr. Charles Chao, for the sale of 11,000,000 newly issued ordinary shares of the company to Mr. Chao, for a total purchase price of approximately US$456 million in cash. The per share purchase price of US$41.49 represents the average closing trading price of SINA’s ordinary shares for the 30 trading days ended May 29, 2015 and is higher than the closing trading price on May 29, 2015, the last trading day before the signing of the subscription agreement. Chao has agreed to a six month lock-up restriction after the closing. Sina is an online media company serving China. It operates SINA.com, SINA mobile and Weibo. Chao joined Sina in 1999 as VP of Finance. He has served as CFO, COO, and President. He became CEO in 2006. He has an accounting degree from University of Texas at Austin, an M.A., Journalism from University of Oklahoma and a B.A. in Journalism from Fudan University in Shanghai, China.

Qunar Announces Offering of ADS
Beijing-based Qunar Cayman Islands Ltd. (Nasdaq: QUNR) is offering a public offering of its ADS’s, representing three Class B ordinary shares for US$0.001 per share by the company. The company is offering an aggregate of 8,000,000 ADSs, representing 24,000,000 Ordinary Shares, subject to market conditions. The underwriters a 30-day option to purchase up to an aggregate of 1,200,000 additional ADSs. The company intends to use a majority of the net proceeds for general corporate purposes, including the acquisition of new users. It may use a portion of the net proceeds to acquire complementary businesses, products, services or technologies. Qunar means “where to go” in Mandarin Chinese. Goldman Sachs (Asia) L.L.C. is acting as book-running manager for the offering and BofA Merrill Lynch is acting as co-manager.

ChinaNet Receives Modest Investment
Beijing-based ChinaNet Online Holdings Inc. (Nasdaq: CNET) received an investment from Dongsys Innovation of US $1.25 million. The proceeds from the offering will be used for working capital to fund technology research and development, marketing for new services and product launches, and potential mergers and acquisitions.


Pingtan Declares Dividend
Fuzhou-based Pingtan Marine Enterprise Ltd. (Nasdaq: PME) declared a cash dividend of $0.01 per share of common stock outstanding, payable in cash on or about July 15, 2015 to shareholders of record on June 15, 2015. The company has been declaring dividends quarterly and plans to continue to do so. Pingtan operates a fleet of fishing vessels in the Indian Exclusive Economic Zone and the Arafura Sea of Indonesia.


Xiu.com Raises $30M
Shenzhen-based private company, Xiu.com, rasied $30 million in a series C funding round led by venture capital firm Pacific Venture Partners. Xiu.com’s previous investors, including KPCB also participated this round. Launched in 2008, Xiu.com dedicates itself in bring global products and lifestyle into China, offering luxury clothing, cosmetics, bags, jewelry, shoes and other home products to online shoppers. According to the company press release, it sells luxury goods from over 600 overseas companies, including Salvatore Ferragamo, eBay, Blue Nile, and Hugo Boss.