AutoNavi Announces Receipt of "Going Private" Proposal
BEIJING, Feb. 10, 2014 (GLOBE NEWSWIRE) -- AutoNavi Holdings Limited (Nasdaq: AMAP) ("AutoNavi" or the "Company"), a leading provider of digital map content and navigation and location-based solutions in China, today announced that its Board of Directors has received a non-binding proposal letter, dated February 10, 2014, from Alibaba Group Holding Limited ("Alibaba"), that proposes a "going-private" transaction (the "Transaction") to acquire all of the American depositary shares and ordinary shares of AutoNavi not already beneficially owned by Alibaba for US$21 in cash per American depositary share, each representing four ordinary shares.
Alibaba beneficially owns preferred and ordinary shares of the Company representing approximately 28% of the Company's total issued and outstanding shares.
According to the proposal letter, Alibaba intends to fund 100% of the cash consideration payable in the Transaction with its cash on hand and the Transaction will not be subject to any financing condition. A copy of the proposal letter is attached hereto as Exhibit A.
A copy of the proposal letter accompanying this release is available at http://media.globenewswire.com/cache/12938/file/24553.pdf
AutoNavi's Board of Directors intends to promptly form a committee of independent directors (the "Independent Committee") to consider the Transaction. The Independent Committee will be authorized to retain advisors, including an independent financial advisor and legal counsel, to assist it in its work. The Board of Directors cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from Alibaba and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in the Company's annual report on Form 20-F as well as in its other filings with the Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.
This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
About AutoNavi Holdings Limited
AutoNavi Holdings Limited (Nasdaq: AMAP) is a leading provider of digital map content and navigation and location-based solutions in China. At the core of its business is a comprehensive nationwide digital map database that covers approximately 3.6 million kilometers of roadway and over 20 million points of interest across China. Through its digital map database and proprietary technology platform, AutoNavi provides comprehensive, integrated navigation and location-based solutions optimized for the China market, including mobile location-based solutions and Internet location-based solutions, automotive navigation solutions, and public sector and enterprise applications. For more information on AutoNavi, please visit http://www.autonavi.com.