IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

58.com’s Privatisation Bid Leads to Much Head-Scratching

58.com’s Privatisation: Next Move Tencent

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p>Today, <a href="https://www.smartkarma.com/entities/58-com-inc-adr" target="_blank" data-smartkarma-citation="entities:2563:1" rel="noopener">58.Com Inc Adr (WUBA US)</a> announced that it has entered into a definitive agreement for a privatisation proposal from a consortium. The consortium comprised of Warburg Pincus, General Atlantic, Ocean Link and Mr Jinbo Yao (Chairman and CEO). The privatisation price of $56.00 per ADS is marginally ahead of the original price of $55.00 per ADS announced on 2 April. The bid of $56.00 per ADS values 58.com’s equity at $8.7 billion. </p><div class="content-highlight"><p>As 58.com is incorporated in the Cayman Islands, for the privatisation to succeed, shareholders representing at least two-thirds (66.7%) of the voting power of the shares present and voting in person or by proxy need to approve the deal. Notably, the consortium in aggregate holds 44.1% of the total voting power. While we continue to believe that the bid remains unattractive for minorities, the marginally improved privatisation bid is a seemingly done deal. </p></div>

Today, 58.Com Inc Adr (WUBA US) announced that it has entered into a definitive agreement for a privatisation proposal from a consortium. The consortium comprised of Warburg Pincus, General Atlantic, Ocean Link and Mr Jinbo Yao (Chairman and CEO). The privatisation price of $56.00 per ADS is marginally ahead of the original price of $55.00 per ADS announced on 2 April. The bid of $56.00 per ADS values 58.com’s equity at $8.7 billion. As 58.com is incorporated in the Cayman Islands, for the privatisation to succeed, shareholders representing at least two-thirds (66.7%) of the voting power of the shares present and voting in person or by proxy need to approve the deal. Notably, the consortium in aggregate holds 44.1% of the total voting power. While we continue to believe that the bid remains unattractive for minorities, the marginally improved privatisation bid is a seemingly done deal. 

58.com’s Privatisation Enters into Definitive Agreement