The merger between E-House (China) Holdings Limited (ADR) (NYSE:EJ) and its wholly-owned subsidiary E-House Merger Sub Ltd has come to a completion. The Merger Agreement was endorsed by the Company’s shareholders at an extraordinary general meeting held on August 5, 2016. The endorsement calls for the cancellation of all the Company’s ordinary shares, issued an outstanding before the Merger. They will be replaced with a right to receive US$6.85 per Share. Company’s American depositary shares will also be canceled n exchange for the right to receive US$6.85 per ADS. This will be paid in cash but with exclusion with interest and net of any applicable fees and withholding taxes.
Nonetheless, there will be no payment for shares owned by various particulars. They include Zhou Xin, the co-chairman of the board of directors, Neil Shen Nanpeng, a member of the board of directors, Kanrich Holdings, SINA CORPORATION (BMV:SINAN), On Chance and Jun Heng Investment as well as Smart Create Group and Smart Master International. Registered shareholders are now expected to submit their share certificates in exchange for the merger consideration. Meanwhile, they should wait for their letter of transmittal before surrendering their share certificates.
Suspension of trading of ADSs on the New York Stock Exchange
The company put on the brink the trading of its ADSs way before the opening of the market. The filing of Form 25 with the SEC gives a notification of delisting of its ADSs on NYSE as well as the deregistration of the Company’s registered securities which only becomes effective 90 days after the filing of Form 25.
There are speculations that the company could be hunting for a new listing in China where it feels that investors recognize its value.
More of E-House (China) Holdings Limited
With the wide range of services to the real estate industry, the China’s leading real estate services company has a global coverage of more than 260 cities. Its high-quality services that include offline advertising and promotion, primary sales agency, and real estate investment management have placed the company at a higher pitch of recognition by the National Association of Real Estate Brokerage and Appraisal Companies.