May 22, 2017 UPDATE: the Cayman litigation is in DISCOVERY phase. Trial is set for January 2018.



Li Guoqing & Peggy Yu (李国庆 & 俞渝 ), using minority shareholder squeeze-out tactics, acted as both buyer and seller of E-Commerce Dangdang Inc.

李国庆 & 俞渝 一边代表公司管理层,一边代表买家。通过管理层任命的特别委员会的批准, 自己定价把公司卖给自己。

The buyer initially proposed the buyout merger on July 9, 2015, and completed the Merger on September 20, 2016. 

The merger squeezed out minority shareholders that collectively owned >60% of the company at a price $6.7 per ADS. 

  • 42% less than $9.55, 30-days trading average prior to management buyout process.
  • 55% less than $10.5, 52-weeks trading average prior to management buyout process.
  • 58% less than its IPO price of $16 in 2010.

Li Guoqing & Peggy Yu (李国庆 & 俞渝), 36% owner of the company before its privatization, effectively created a single buyer market by publicly stating they are unwilling to sell own shares to any third party with their super voting power.

李国庆 & 俞渝 把纽交所上市公司以管理层兼买家的身份,利用自己设定的超级投票权和可怜的价格,把公司从拥有公司大多数股权的公共股东股票强行买走。

Tactics 1: Opportunistic Timing | 李国庆 & 俞渝 第一招

Li Guoqing & Peggy Yu initiated privatization when Dangdang stock crashed 40% in 20 days without any company news.
李国庆 & 俞渝 趁着中概股在2015年6,7月大幅杀跌,当当的股票在没有任何消息下20天下跌40%, 发起私有化。

 

Ironically, over the 9 months period prior privatization process, the management has repeated stated that Dangdang share was MASSIVELY UNDERVALUED when the shares were traded between $12 - $15. 
就在管理层发起私有化之前的9个月里,CEO李国庆在电视和微博上多次宣称$15的股价是严重被低估。并说明自己的职责是给股东创造价值。

$13: massively undervalued 严重低估

$15: massively undervalued 严重低估

 

5 months later, Li Guoqing's statement in SEC filings - 6. We believe that the Acquisition will provide superior value to the Company shareholders"

 但是数月之后,李国庆发起私有化流程给SEC披露中又说:管理层给公众股东出的私有化价格是超值的。