YY Gets Offer From Its Chairman To Be Taken Private For $68.50/ADS In Cash

(RTTNews) - YY Inc. (YY) said that it has received a non-binding proposal letter, dated July 9, 2015, from Jun Lei, Chairman of the Board, and David Xueling Li, director and Chief Executive Officer of YY, proposing a "going-private" transaction to acquire all of the outstanding ordinary shares of YY not already beneficially owned by the Buyer Group for $68.50 in cash per American depositary share or "ADS", each representing 20 ordinary shares.

The proposed purchase price represents a premium of approximately 17.4% to the closing trading price of the Company's ADS on July 8th, 2015, the last trading day prior to the date hereof.

The Buyer Group currently beneficially owns about 35.7% of all the issued and outstanding shares of the Company, which represent about 75.1% of the aggregate voting power of the Company.

According to the proposal letter, the Buyer Group intends to fund the consideration payable in the Transaction with a combination of debt and/or equity capital, and rollover equity in the Company.

The company noted that its board plans to form a special committee comprised of independent and disinterested directors and will authorize the special committee to retain legal and financial advisors to assist it in evaluating the Transaction.

The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction.

The company noted that there can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.