PR Newswire, 1/08/09
Chinese online game developer and operator The9 (Nasdaq: NCTY) has announced that its Board of Directors has adopted a shareholder rights plan.
Under the plan, one right will be distributed for each ordinary share of The9 outstanding at the close of business on January 22, 2009.
The rights will become exercisable only if a person or group obtains ownership of 15% or more of The9's voting securities, subject to certain exceptions, and would entitle shareholders to purchase, for the exercise price set forth in the rights plan, a number of shares with a value twice that of the exercise price. The rights plan will continue in effect until January 8, 2019, unless the plan is terminated by The9 or the rights are redeemed by The9 before the plan expires.
Editor's Note: Marbridge has heard from an industry source that the shareholder rights plans may have been implemented in response to a move by Netease (Nasdaq: NTES), which is reportedly considering a purchase of up to RMB 4 bln worth of The9's shares.