Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

3rd August 2015, eLong Inc. announced that it has received a preliminary non-binding proposal letter from Tencent Holdings Limited ("Tencent"), proposing a "going-private" transaction to acquire all outstanding ordinary shares of eLong, Inc not already beneficially owned by TCH. The proposed offer is $18 in cash per ADR.This is the latest ADR offer that comes after:<ol><li>CMGE's EGM approved the offer from Orient Hongtai (deal completed 10 Aug 15); and</li><li>Xueda received a Definite Merger Agreement (DMA) with a 62.7% increase in the offer from Xiamen Insight Investment. </li></ol>We anticipate that there will be more DMAs and non-binding proposals to come because of the weakness in VIE structures and support by the Chinese Authorities to list at home.This has been written about extensively by the Smartkarma community. Some of the other pieces on this topic are "<a href="http://www.smartkarma.com/insights/a-herd-of-fine-horses-are-starting-to-head-back-to-their-home-market" target="_blank">A herd of fine horses are starting to head back to their home market</a>" and "<a href="http://www.smartkarma.com/insights/the-horses-continue-to-gallop-home-let-s-talk-about-their-journey-back" target="_blank">The Horses Continue To Gallop Home, Let's Talk About Their Journey Back</a>".More below the fold...

3rd August 2015, eLong Inc. announced that it has received a preliminary non-binding proposal letter from Tencent Holdings Limited ("Tencent"), proposing a "going-private" transaction to acquire all outstanding ordinary shares of eLong, Inc not already beneficially owned by TCH. The proposed offer is $18 in cash per ADR.This is the latest ADR offer that comes after:CMGE's EGM approved the offer from Orient Hongtai (deal completed 10 Aug 15); andXueda received a Definite Merger Agreement (DMA) with a 62.7% increase in the offer from Xiamen Insight Investment. We anticipate that there will be more DMAs and non-binding proposals to come because of the weakness in VIE structures and support by the Chinese Authorities to list at home.This has been written about extensively by the Smartkarma community. Some of the other pieces on this topic are "A herd of fine horses are starting to head back to their home market" and "The Horses Continue To Gallop Home, Let's Talk About Their Journey Back".More below the fold...

"Falling, falling... Now! Let's take it private"