BEIJING, April 2, 2020 /PRNewswire/ -- 58.com Inc. (NYSE:
WUBA) ("58.com" or the "Company"), China's largest online classifieds
marketplace, today announced that its Board of Directors (the
"Board") has received a preliminary non-binding proposal letter
dated Apr 2, 2020 (the "Proposal
Letter") from Ocean Link Partners Limited (the "Proposing Buyer")
to acquire all of the outstanding ordinary shares of the Company,
including Class A ordinary shares represented by American
depositary shares (the "ADSs", each representing two Class A
ordinary shares), for US$27.5 in cash
per Class A or Class B ordinary share, or US$55.0 in cash per ADS. A copy of the proposal
letter is attached hereto as Exhibit A.
According to the Proposal Letter, the Proposing Buyer intends to
fund the consideration payable in the Transaction primarily with
equity capital from the Proposing Buyer and any additional members
the Proposing Buyer accepts into a consortium of buyers, and
possibly debt capital.
The Board plans to evaluate the Proposed Transaction. The Board
cautions the Company's shareholders and others considering trading
the Company's securities that the Board has just received the
proposal letter and has not had an opportunity to carefully review
and evaluate the proposal or make any decision with respect to the
Company's response to the proposal. There can be no assurance that
any definitive offer will be made, that any definitive agreement
will be executed relating to the proposed transaction or that this
or any other transaction will be approved or consummated. The
Company does not undertake any obligation to provide any updates
with respect to this or any other transaction, except as required
under applicable law.
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online classifieds
marketplace, as measured by monthly unique visitors on both its
www.58.com website and mobile applications. The Company's online
marketplace enables local business users and consumer users to
connect, share information and conduct business. 58.com's broad,
in-depth and high-quality local information, combined with its
easy-to-use website and mobile applications, has made it a trusted
marketplace for consumers. 58.com's strong brand recognition, large
and growing user base, merchant network and massive database of
local information create a powerful network effect. For more
information on 58.com, please visit http://www.58.com.
Safe Harbor Statements
This press release contains forward-looking statements made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," "confident" and similar statements. 58.com may also
make written or oral forward-looking statements in its reports
filed with or furnished to the U.S. Securities and Exchange
Commission, in its annual report to shareholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Any statements
that are not historical facts, including statements about 58.com's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: 58.com's goals and strategies; its future business
development, financial condition and results of operations; its
ability to retain and grow its user base and network of local
merchants for its online marketplace; the growth of, and trends in,
the markets for its services in China; the outbreak of COVID-19 or other
health epidemics in China or
globally; the demand for and market acceptance of its brand and
services; competition in its industry in China; its ability to maintain the network
infrastructure necessary to operate its website and mobile
applications; relevant government policies and regulations relating
to the corporate structure, business and industry; and its ability
to protect its users' information and adequately address privacy
concerns. Further information regarding these and other risks,
uncertainties or factors is included in the Company's filings with
the U.S. Securities and Exchange Commission. All information
provided in this press release is current as of the date of the
press release, and 58.com does not undertake any obligation to
update such information, except as required under applicable
law.
For more information, please contact:
58.com Inc.
ir@58.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
Exhibit A
Preliminary Non-Binding Proposal
to Acquire All Outstanding Shares in 58.com Inc.
April 2, 2020
The Board of Directors
58.com Inc.
Building 105, 10 JiuXianQiao North Road Jia
Chaoyang District, Beijing
100015
The People's Republic of China
Dear Board Members,
Ocean Link Partners Limited, a China-based private equity firm ("Ocean Link"
as the "Proposing Buyer"), hereby submits this preliminary
non-binding proposal (the "Proposal") to acquire all outstanding
shares (the proposed "Transaction") in 58.com Inc. (the
"Company").
We believe that our Proposal provides an attractive opportunity
for the Company's shareholders, especially during a time of
persisting operating difficulty and ongoing COVID-19 uncertainty.
The Proposal represents a premium of 17.8% to the Company's last
closing price on April 1, 2020 and a
premium of approximately 17.1% to the volume-weighted average
closing price during the last 15 days.
Set forth below are the primary terms of our Proposal:
- Purchase Price. We propose to acquire all of the outstanding
ordinary shares of the Company and the American Depositary Share of
the Company ("ADS", each representing two Class A ordinary shares
of the Company). The consideration payable for each ADS to be
acquired will be US$55.00 in cash, or
US$27.50 in cash per ordinary share
(in each case other than those ADSs or ordinary shares held by
shareholders).
- Funding. We intend to finance the Transaction primarily with
equity capital, and possibly debt capital. Equity financing
will be provided from us as the Proposing Buyer and any additional
members we accept into a consortium of buyers.
- Due Diligence. We believe that we will be in a position to
complete customary due diligence for the Transaction in a timely
manner and in parallel with discussions of corresponding definitive
agreements.
- Definitive Agreements. We are prepared to promptly negotiate
and finalize definitive agreements ("Definitive Agreements") for
the Transaction. These documents will provide for representations,
warranties, covenants and conditions which are typical, customary
and appropriate for transactions of this type.
- Process. We believe that the Transaction will provide superior
value to the Company's shareholders. We recognize that the
Company's Board of Directors (the "Board") will likely need to
evaluate the Transaction independently before the Company can make
any determinations.
- No Binding Commitment. This letter constitutes only a
preliminary indication of our interest, and does not constitute any
binding commitment with respect to the Transaction. A binding
commitment will result only from the execution of Definitive
Agreements, and then will be on terms and conditions provided in
such documentation.
We would like to express our commitment to working
collaboratively with the Company to bring this Transaction to a
successful and timely conclusion. Should you have any questions
regarding this proposal, please do not hesitate to contact
us.
Sincerely,
Ocean Link Partners Limited
By: Tony Tianyi Jiang, Partner
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SOURCE 58.com Inc
