PR Newswire Asia, 3/02/11
Chinese B2C mail-order e-commerce company Mecox Lane (Nasdaq: MCOX) today announced that Chinese internet company Sina (Nasdaq: SINA) and a subsidiary of Chinese sports apparel manufacturer Dongxiang have entered into separate agreements to acquire an aggregate of 117.51 mln ordinary shares of Mecox Lane. The shares will be purchased from two of Mecox Lane's major shareholders: Maxpro Holdings Limited and Ever Keen Holdings Limited, both wholly owned by Sequoia Capital.
Under the share purchase agreements, Sina will buy 76.99 mln ordinary shares, or approximately 19% of the issued and outstanding shares of Mecox Lane, and Dongxiang will purchase 40.52 mln ordinary shares, or approximately 10% of the issued and outstanding shares of Mecox Lane (Sales Shares). The purchase price is USD 0.8571 per share. The selling shareholders also agreed to grant Sina and Dongxiang options to purchase 48.25 mln and 18.31 mln ordinary shares of Mecox Lane, respectively. The options are exercisable during a two-year period starting from the closing date of the above share purchases and the exercise price is USD 1.1429 per ordinary share.
Upon the closing of share purchases, a representative from Sina will be appointed as a director of Mecox Lane and Kelvin Yu, a vice president with Sequoia, will resign from the board. Both Sina and Dongxiang will be subject to a one-year lock-up with respect to the Sale Shares, starting from the closing date of the share purchases. Sequoia will also be subject to 180-day lock-ups starting from the closing date of the share purchases, for their respective remaining shares in Mecox Lane.