Tsinghua Unigroup Invests USD 124 Mln in Online Lottery Site 500.com
500.com, 6/09/15
Chinese online lottery site operator 500.com (NYSE: WBAI) has announced that it has entered into a definitive purchase agreement with Tsinghua Unigroup International, a subsidiary of Tsinghua Unigroup, for the issuance and sale of newly issued ordinary shares of 500.com. Tsinghua Unigroup is majority owned by Tsinghua Holdings which is 100% owned by Tsinghua University.
Pursuant to the purchase agreement, Tsinghua Unigroup International will purchase 63,500,500 newly issued Class A ordinary shares of 500.com for a total purchase price of approximately USD 123.8 mln in cash. The per share purchase price of USD 1.95 (corresponding to USD 19.5 per American Depository Receipt) represents a 1.4% discount of the average closing trading price of 500.com's ordinary shares for the 30 trading days ended June 8, 2015, or a 17.9% discount of the closing trading price of 500.com's ordinary shares on June 8, 2015, the day prior to the date of the purchase agreement.
Unigroup International has agreed to subject all the shares it or its affiliate will acquire in the transaction to a contractual lock-up restriction for six month after the closing. The closing is expected to take place on or before June 30, 2015, upon satisfaction of customary closing conditions.
Upon closing, Tsinghua Unigroup will hold 15.2% of 500.com's issued and outstanding ordinary shares. Pursuant to the purchase agreement, 500.com will appoint Zhao Weiguo, the chairman of Tsinghua Unigroup, as a director of 500.com upon closing. Since 2009, Zhao has served various management roles in Tsinghua Unigroup, including CEO and chairman. Zhao also serves as a senior vice president of Tsinghua Holdings. Zhao serves as the chairman and CEO of Beijing Unis Communications. Zhao has served as the chairman of Beijing Jian Kun Investment since 2003. Zhao also serves as a director of TCL Corporation and Tongfang from 2015.
Keywords: Internet online lottery WBAI 500.com Tsinghua University Tsinghua Holdings Zhao Weiguo Tsinghua Unigroup M&A HR
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