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。

Dangdang vs. Shareholders | 当当 vs. 小股东

 

 

 

 

 

 

Dissenting Shareholder Litigation at Cayman Grand Court, presented on Nov. 29, 2016.

开曼法庭的股东官司, 起于2016年11月29

 

 

 

As of June 1, 2017, litigation is in the DISCOVERY stage.

Materials are subject to confidentiality of 24 months.