China's 58.com in $8.7bn take-private deal
Posted on Jun 16, 2020
The transaction values 58.com at $8.7 billion.
Under the terms of the deal, Quantum Bloom will merge with 58.com and the resulting company will be acquired by a consortium of investors that includes Warburg Pincus Asia LLC, General Atlantic Singapore Fund, Ocean Link Partners, Jinbo Yao (chairman of the board of directors and CEO of 58.com, and Internet Opportunity Fund (an entity controlled by Jinbo Yao).
The business 58.com 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.
The merger consideration represents a premium of 19.9 per cent to the closing price of the company's American depository shares (ADSs) on 1 April, 2020, the last trading day prior to the company's announcement of its receipt of the original "going-private" proposal, and a premium of 19.2 per cent to the volume-weighted average closing price of the company's ADSs during the last 15 calendar days prior to its receipt of the original "going-private" proposal.
Houlihan Lokey (China) is serving as financial advisor to the 58.com board “special committee”, with Fenwick & West serving as US legal counsel to the committee. Skadden, Arps, Slate, Meagher & Flom is serving as US legal counsel to 58.com, with Han Kun Law Offices serving as PRC legal counsel to 58.com. Conyers Dill & Pearman is serving as Cayman Islands legal counsel to 58.com.
Wilson Sonsini Goodrich & Rosati, and Paul, Weiss, Rifkind, Wharton & Garrison, as well as Kirkland & Ellis and Weil, Gotshal & Manges are serving as international co-counsels to the consortium of investors. Fangda Partners is serving as PRC legal counsel to the consortium. Maples and Calder (Hong Kong) is serving as Cayman Islands legal counsel to the consortium.
The Kirkland & Ellis team is being led by transactional partners Daniel Dusek and Xiaoxi Lin and debt finance partners Jacqueline Zheng and David Irvine.