Ocean Link Consortium Offered Higher Price to Take-private eHi
SHANGHAI, April 30, 2018 /PRNewswire/ -- Ocean Link Partners Limited ("Ocean Link"), a private equity firm dedicated to investing in travel-related industries in China, is providing an update on the progress of its non-binding proposal to acquire all outstanding common shares of eHi Car Services Limited ("eHi" or the "Company").
On April 2, 2018, Ocean Link submitted a non-binding proposal to purchase all outstanding common shares (the "Shares") of eHi in a going-private transaction (the "Acquisition"). The proposed purchase price for each American depositary share of the Company ("ADS", each representing two Shares) is US$14.5, or US$7.25 per Class A or Class B share, in cash. This price is US$1 per ADS higher than the price offered in the Agreement and Plan of Merger announced by eHi on April 6, 2018.
On April 4, 2018, a Purchase and Voting Agreement was made between Ocean Link and CDH Venture Partners II, L.P. ("CDH") to transfer to Ocean Link control over 538,764 Class A Common Shares (including 438,764 Class A Common Shares in the form of 219,382 ADSs), and 8,599,211 Class B Common Shares of eHi (the "eHi Shares"). This transaction has closed.
On April 6, 2018, a Consortium Agreement was made between Ocean Link and Ctrip Investment Holding Ltd. ("Ctrip", together with Ocean Link, the "Ocean Link Consortium").
Ctrip holds 4,300,000 Class A Common Shares, and 15,168,193 Class B Common Shares of eHi as of March 31, 2017. Collectively, the Ocean Link Consortium holds 4,838,764 Class A Common Shares and 23,767,404 Class B Common Shares. The Ocean Link Consortium is confident that sufficient voting power has been gathered to veto any opposing take-private transaction that is not in the best interest of eHi's shareholders.
Recently the Ocean Link Consortium presented a petition and an injunction to the Cayman Islands Grand Court. The main purposes of this Court filing are to restrain the reliance upon, and declare void, resolutions passed at a meeting of the Board of eHi dated April 6, 2018 in relation to the bid by the Management Consortium, and to direct the Special Committee to diligently consider the offer by the Ocean Link Consortium.
The Ocean Link Consortium encourages other existing shareholders, including management shareholders, to join the Ocean Link Consortium or to support its higher price offer.
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