China Asset Management Eyes $339M Privatization Of iSoftStone

New York Stock Exchange-listed Chinese IT services provider, iSoftStone Holdings, says that it has received a preliminary non-binding proposal to take the company private.

The buyers include the company’s CEO and chairman, Tianwen Liu, and China AMC Capital Management Ltd., an alternative investment firm incorporated in the Cayman Islands.

China AMC Capital Management is an affiliate of China Asset Management (Hong Kong) Limited, which is a wholly owned subsidiary of China Asset Management Co., Ltd, China’s largest fund management company with RMB218 billion ($36 billion) under management.

The buyer group is planning to acquire all of the outstanding shares at US$0.585 in cash per ordinary share or US$5.85 in cash per American Depositary Shares (ADS).

The deal will be financed with a combination of debt and equity, and is subject to negotiation and execution of definitive agreements.

The company’s board says it has not made any decisions on a response to the proposal.

The deal continues a wave of privatization transactions among U.S.-listed Chinese companies. In recent months, several companies including AsiaInfo-Linkage Inc., Focus Media, 3SBio Inc. have either completed or received privatization deals.

Founded in 2001, iSoftStone provides an integrated suite of IT services and solutions, including consulting & solutions, IT services, and business process outsourcing services. iSoftStone’s ADS began trading on the New York Stock Exchange on December 14, 2010.