58.com, the ‘Craig’s List of China,’ Says Adios to Wall Street
What’s new: Online classifieds specialist 58.com Inc., sometimes called the Craig’s List of China, said it has entered into a final deal to go private and delist from the New York Stock Exchange.
It said the buyout group includes its Chairman Yao Jinbo, U.S. private equity giant Warburg Pincus and General Atlantic.
The buyout group has agreed to purchase all of 58.com’s American depositary shares for $56 apiece, representing a 20% premium to its close before the receipt of its original privatization proposal on April 1.
Background: The deal would make 58.com the latest in a recent string of Chinese companies to delist from New York, and comes just days after online car information provider Bitauto announced it had entered into a similar deal.
Many of those companies felt their shares were undervalued by U.S. investors, and after leaving Wall Street, some have relisted in their home China market. 58.com listed in 2013 by selling shares at an IPO price of $17 apiece. Its current market value stands at around $8 billion.
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