NASDAQ-listed Chinese digital mapping and navigation firm AutoNavi Holdings Limited says that it has entered into a definitive merger agreement to be acquired by Alibaba Group Holding Ltd. in a go-private deal, according to a company announcement.
The deal is currently expected to close in the third quarter this year, and has won AutoNavi’s board approval.
Alibaba will pay US$21 in cash per American Depositary Shares (ADS) to acquire 71.8% of the Beijing-based AutoNavi it doesn’t already own.
The price represents a 27% premium to AutoNavi’s closing price of US$16.54, before its announcement on February 10 after it received Alibaba’s privatization proposal.
The current agreed terms are the same to the February proposal, at a total price tag of US$1.1 billion. The deal values AutoNavi at US$1.5 billion on a converted and fully diluted basis.
The transaction still needs shareholder approval. After completion, AutoNavi will become a wholly-owned subsidiary of Alibaba, and delist from the NASDAQ.