CITIC will pay $12 per share for AsiaInfo-Linkage, valuing the business at $890m, a premium of 52 per cent to the closing price on January 11, the last day of trading before the take-private proposal was announced.
The company’s board of director has already approved the deal and recommended shareholders to shareholders to accept the offer.
The CITIC-led consortium also includes AsiaInfo-Linkage co-founder Edward Tian and CBC’s China Broadband Capital Partners II fund.
The deal also includes $330m of debt provided by Bank of Taiwan, Cathay United Bank, ICBC International Capital Limited, Maybank Investment Bank Berhad and Nomura International.
CITIC and fellow private equity firm CDH Investments Management have recently made a four times money multiple by exiting Chinese vehicle parts maker Nanjing Aotecar.
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