China Everbright Supports Management Buyout Of iSoftStone

Beijing-based Chinese IT services provider iSoftStone Holdings Limited says it has entered into a definitive agreement, in which its chairman and CEO Liu Tianwen, together with China Everbright Investment Management Limited, will take the company private, according to a company announcement.

The buyer consortium will acquire New York Stock Exchange-listed iSoftStone for US$5.70 per American Depositary Share (ADS). It represents a premium of 17.8% over the company’s closing price of US$4.84 on June 5, 2013, the last trading day before the company announced that it had received a go-private deal proposal.

The deal values the company at approximately US$332 million.

The buyer group, which also includes certain unnamed management members of the company and shareholders, own approximately 21.9% of the company as of March 31, 2014.

The buyer group is financing the deal with equity financing provided by Liu Tianwen and China Everbright, as well as a US$130 million loan offered by China Merchants Bank Co., Ltd.’s Hong Kong branch.

The board has approved the deal, which still need two-thirds or more shareholder voting in favor.

China Expert network