IDreamSky Agrees To Be Taken Private By CEO Led-Consortium For US$14.00/ADS

(RTTNews) - iDreamSky Technology Limited (DSKY), China-based mobile game publishing platform, announced that it has entered into a definitive Agreement and Plan of Merger with Dream Investment Holdings Limited or "Parent" and Dream Merger Sub Limited or "Merger Sub", a wholly-owned subsidiary of Parent.

As per the Merger Agreement, a consortium of management and investors will through Parent acquire the Company for a cash consideration equal to US$3.50 per Class A and Class B ordinary share of the Company or US$14.00 per American depositary share of the Company, on the basis that each American depositary share represents four Class A ordinary shares.

The amount represents a premium of 39.8% to the volume-weighted average closing price of the Company's ADSs during the 60 trading days prior to June 12, 2015, the last trading day prior to June 15, 2015, the date that the Company announced it had received a "going-private" proposal.

The consortium is led by Michael Xiangyu Chen, chief executive officer and chairman of the board of directors of the Company and Mr. Anfernee Song Guan, chief technology officer and a director of the Company, together with certain rollover securityholders and new investors, including, among others, V Capital, Prometheus Capital, Legend Capital, We Capital, Star VC or their affiliated entities.

The company's board of directors approved the Merger Agreement, and resolved to recommend that the Company's shareholders vote to authorize and approve the Merger Agreement and the merger.

The merger, which is currently expected to close during the second quarter of 2016, is subject to various closing conditions.

If completed, the merger will result in the Company becoming a privately-held company and its ADSs will no longer be listed on The NASDAQ Select Global Market.

The consortium intends to fund the merger through a combination of (a) rollover financing from the Rollover Securityholders of 73.42 million Shares, (b) equity financing provided by certain investors of the consortium in an aggregate amount equal to approximately US$229.91 million pursuant to equity commitment letters, and (c) debt financing arranged by Shanghai Pudong Development Bank Co., Ltd., Shanghai Branch in an aggregate amount of US$161 million pursuant to a debt commitment letter issued by the Lender.