The same is why private opposition so much

The privatization price

[Abstract] is far lower than the issue price, investors are ready to denounce

Tencent technology Lei Jianping reported on February 19th

(NYSE:JMEI), announced before received from CEO Chen ou, vice president of product Dai amamori, and Sequoia Capital Acquisition submitted per American depositary share (ADS) $7 for privatisation.

the price than proposed privatization in February 16th before the closing price of $5.83 compared to a premium of about 20%.

however, this privatization plan has been a voice of opposition. Some investors will be’s company name apart, said the United States "no goods". There are investors will Chen Europe, I speak for myself, the ad into Chen ou, I speak for shameless".

The privatization plan

why encountered such a fierce rebellion? There are several reasons:

1, the privatization price of is far lower than the issue price.

May 2014, to determine the issue price of $22, higher than the previously announced price range of $19.5 to $21.5, up $430 million of financing;

in February 2016, announced the privatization, the price is only $7. This means that in the market in less than two years, the investment made a loss of 69%.

The year of

, the Alibaba B2B business privatization, Ma said the listing thaw only $1 billion 700 million, but the privatization took out $about 2000000000, is decided with the greatest sincerity and fair as possible to express gratitude and respect for shareholders.

, however, due to the issue price of Alibaba is 13.5 Hong Kong dollars, there are people in the industry to attack Ma, HK $07 for the year of HK $13.5 is not equal to $12, according to the inflation rate of 10% is now worth $20. Alibaba B2B is not to lend interest to borrow money to spend.

analysts pointed out that, today,, Dangdang, everyone, jiubang digital, hundreds of Air Media privatization price is lower than the issue price of 50% to 70% Ma, privatize the price set at HK $13.5 has been very benevolent".

2, listed nearly 2 years, most of the time the stock price in more than $7. According to the shares in the privatization practice, 3 months average premium of up to 15% to 30%, while closed 3 months the average price is $7.85.

, that is to say, the privatization price not only higher than the 3 month average premium of 15% to 30%, or even less than 3 months, the average premium of 10.8%.

Comparison of 360

can show the this practice is not kind". 360 privatization price of $77, although

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