Chinese Internet giant Tencent Holdings Limited has proposed to take NASDAQ-listed online travel service provider eLong Inc. private by acquiring all outstanding shares of eLong not already own by Tencent, according to a company announcement.
Tencent plans to acquire eLong’s shares at US$18 per American Depository Share (ADS) in cash, which represents a premium of approximately 24.1% to the company’s last closing price before the announcement.
Tencent currently owns over five million high-vote ordinary shares, and over six million ordinary shares, representing approximately 15% of the aggregate voting power of eLong.
Tencent plans to invite eLong’s management to join in the proposed deal as well, says the statement. The deal will be financed with a combination of Tencent’s own capital and funds from eLong’s management.
The deal is pending upon approval by the majority shareholders of eLong.
(Update on February 5, 2016: The companies entered into into a definitive agreement and the deal has won board approval, says a release.)