Sungy Mobile's "Special Committee" Was Advised That a Buyer Consortium Was Formed For the Proposed "Going Private" Transactio...
19 May 2015 - 10:00PM
Sungy Mobile Limited (Nasdaq:GOMO) ("Sungy Mobile" or the
"Company"), a leading provider of mobile internet products and
services globally with a focus on applications and mobile online
platform development, today announced that the special committee of
independent directors (the "Special Committee") has been informed
by IDG-Accel China Growth Fund L.P., IDG-Accel China Growth Fund-A
L.P., IDG Technology Venture Investment III, L.P., IDG-Accel China
Investors L.P. (collectively "IDG"), Mr. Yuqiang Deng, chairman and
chief executive officer of the Company ("Mr. Deng") and Mr. Zhi
Zhu, co-chief operating officer of the Company ("Mr. Zhu"), that
IDG, Mr. Deng and Mr. Zhu entered into a consortium agreement on
May 18, 2015, pursuant to which they jointly proposed to acquire
the Company in a "going private" transaction (the "Proposed
Transaction").
As previously announced, the board of directors for the Company
("the "Board") received a preliminary non-binding proposal letter
(the "Proposal") dated April 13, 2015 from Mr. Deng and Mr. Zhu.
According to the Proposal, Mr. Deng and Mr. Zhu proposed to acquire
the Company in a "going private" transaction for all of the
Company's outstanding ordinary shares that were not then
beneficially owned by them, including ordinary shares represented
by the Company's American depositary shares (or "ADSs", each
representing six Class A shares of the Company), at a price of
$4.90 per ADS (or approximately $0.82 in cash per ordinary share).
Subsequently, the Board formed the Special Committee of independent
directors to review and evaluate the Proposal. Based on the
Company's record, IDG, Mr. Deng and Mr. Zhu currently collectively
owned 79,436,604 Class B Ordinary Shares, representing
approximately 42% of the Company's issued and outstanding ordinary
shares on an as-converted basis (excluding 629,502 shares issued to
the depositary in anticipation of future exercise of options) and
approximately 67.8% of the total number of votes represented by the
Company's issued and outstanding ordinary shares.
The Special Committee is still in the process of evaluating the
Proposed Transaction. The Company cautions its shareholders and
others considering trading its securities that neither the Board
nor the Special Committee has made any decision with respect to the
Company's response to the Proposal. There can be no assurance that
any definitive offer will be made by IDG, Mr. Deng, Mr. Zhu or any
other person, that any definitive agreement will be executed
relating to the Proposed Transaction, or that the Proposed
Transaction or any other transaction will be approved or
consummated.
About Sungy Mobile
Sungy Mobile Limited (Nasdaq:GOMO) is a leading provider of
mobile internet products and services globally with a focus on
applications and mobile platform development. Sungy Mobile's
platform product, GO Launcher EX, manages apps, widgets and
functions on Android smartphones and serves as users' first entry
point to their phones; it is the mobile access point from which
many Android users are able to find new and innovative ways to
customize their experience, download apps and interact with their
mobile devices every day.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements, including management quotes and business outlook,
constitute forward-looking statements under the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Such statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. Sungy Mobile does not undertake any obligation to
update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
CONTACT: ICR, Inc.
Chenjiazi Zhong
Tel: +1-646-417-5388
Email: IR@gomo.com
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