SouFun To Buy Controlling Stake In Wanli -Quick Facts

(RTTNews) - SouFun Holdings Limited ( SFUN), the leading real estate Internet platform in China, announced that it had entered into a framework agreement to buy controlling stake in Chongqing Wanli New Energy Co., Ltd.,'s public shell. SouFun said that it will remain a NYSE listed company and plans to consolidate the results of Wanli after this transaction.

SouFun plans to maintain not less than 70% of the equity stake in Wanli following the acquisition and direct share placement. SouFun will not pay cash for the Wanli stake.

SouFun said that the acquisition is expected to be conducted through an assets swap - Wanli plans to spin off its non-cash assets and all liabilities to a third party and SouFun plans to inject certain parts of its businesses (including online media business, Internet financial services, research and big data business), which is projected to be valued at no more than RMB17 billion, into Wanli.

Wanli's public shell accompanied by a concurrent direct placement of Wanli shares to certain investors including IDG Capital Investment Consulting Beijing Co., Ltd., Xizang Ruidong Wealth & Investment Management Co. Ltd. and Xicheng Liu, the current controlling shareholder of Wanli.

The Placement is expected to be made at the per share purchase price equal to 90% of the average trading price of Wanli's shares in 20 trading days immediately before the public announcement of board resolutions approving the Placement and is expected to raise about RMB2.5 billion to RMB5 billion.