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Elong Inc. received an offer from existing shareholder Tencent Holdings Ltd. to buy out the Chinese online travel site.
Tencent, China’s second-largest Internet company, offered shareholders $18 per American depositary receipt, a 27 percent premium to Monday’s closing price in New York, according to a statement on PR Newswire. The ADRs have slumped 37 percent from this year’s high in May.
A record number of U.S.-listed Chinese companies have received bids to take them private this year as a domestic stock rally through June attracted firms to gain listing on Chinese exchanges. The deal flow has slowed in July amid a $4 trillion selloff in the local market. Ctrip.com International Ltd., the country’s largest trip-booking website, purchased a 38 percent stake in Elong in May, becoming the company’s biggest shareholder.
Elong’s ADRs slid 1.9 percent to $14.22 in Monday trading in New York before the company’s statement.
This article was written by Belinda Cao from Bloomberg and was legally licensed through the NewsCred publisher network.