China Index Holdings (NASDAQ:CIH) shares gained 6% pre-market on Tuesday after it received a non-binding acquisition proposal from Fang Holdings (OTC:SFUNY).
Fang Holdings, which operates a real estate internet portal in China, submitted to CIH board of directors a preliminary bid to acquire the latter's all outstanding Class A and Class B ordinary shares, including Class A ordinary shares represented by ADSs, in a going-private transaction at a purchase price of US$0.84 per share or per ADS.
The purchase price represents a premium of 20% to the closing price of CIH's ADS on Aug. 22, 2022.
If completed, the proposed deal would result in CIH's ADSs being delisted from the NASDAQ Global Select Market.
China Index Holdings (CIH), together with its subsidiaries, operates a real estate information and analytics service platform in China. It offers promotion services, including number of online and offline themed campaigns.
CIH’s board of directors is likely to form a special committee, composed solely of independent directors, to consider Fang's proposal with the assistance of an outside financial advisor and legal counsel and to negotiate the proposal on behalf of CIH.