Acorn International Announces Private Purchase of 7.86M Ordinary Shares
Acorn International (NYSE: ATV) today announced that it had, through its wholly-owned subsidiary China DRTV, Inc., agreed to purchase via a negotiated transaction a total of 7,859,550 ordinary shares (equivalent to 2,619,850 American Depositary Shares ("ADSs")) in the form of ordinary shares and ADSs from a limited number of former company employees and their affiliates, representing the entire shareholdings in the Company held by such individuals. The purchase price of $1.1 per ordinary share (equivalent to $3.3 per ADS) was established based on, among other factors, a discount of 15.2 % to the Company's cash assets value per share as of September 30, 2012.
The Company entered into the transaction to remove significant selling shareholder overhang with an aim to prevent its trading price from dramatic fluctuation. The transaction was reviewed and approved by Acorn's board of directors (none of whom has an interest in the transaction).
About Acorn International, Inc.
Acorn is a media and branding company in China, operating one of China's largest TV direct