The tumultuous times in Chinese booking sites continue as brands, investors, and consumers still struggle to fully understand the market.
Qunar Cayman Islands Ltd. received a preliminary proposal from Ocean Management Ltd. to buy all of the outstanding shares of the travel site, the latest example of a proposed privatization for a U.S.-listed Chinese company.
The private equity firm offered to acquire all of the ordinary shares for $30.39 per American depositary receipt, or $10.13 per ordinary share, according to a statement from Qunar Thursday. The non-binding offer is about a 15 percent premium to the closing share of the depositary receipts on June 22.
Qunar has teamed up this year with its primary competitor, Ctrip.com International Ltd., to take combined control of about 80 percent of China’s online hotel and air-ticket markets. Ctrip in January said it would take a “significant” minority stake in Qunar after forming a partnership last year.
Qunar shares rose 7.9 percent to $28.50 in early trading in New York. They had fallen 50 percent this year through Wednesday.
The proposal is for shares not beneficially owned by the “significant shareholders” and the buyer intends to seek support of the company’s shareholders accounting for a majority in voting power, according to the statement.
Qunar said it had formed a special committee of independent directors to evaluate the offer.
©2016 Bloomberg L.P.
This article was written by Molly Schuetz from Bloomberg and was legally licensed through the NewsCred publisher network.
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Photo credit: The Chinese booking site Qunar has received a buyout offer from a private equity. Qunar