Camelot Information Systems Inc. (NYSE: CIS) announced a favorable verdict with regard to its planned merger with Camelot Employee Scheme Inc. and Camelot Employee SubMerger Scheme, a wholly owned subsidiary of Camelot Employee Scheme. In its extraordinary general meeting held on Tuesday, its shareholders voted in favor of the merger proposal, thereby authorizing and approving any and all transactions contemplated by the Merger Agreement.
Merger Details
Camelot Information Systems, a Chinese company providing enterprise application and software support to the financial industry, had entered into a definitive Merger Agreement last September with Camelot Employee Scheme and Camelot Employee SubMerger Scheme, both limited liability companies domiciled in the British Virgin Islands (BVI). Post merger, Camelot Information Systems will cease to be a publicly traded company, with its ADSs (American Depository Shares) being delisted from the New York Stock Exchange.
Per the agreement, Camelot Employee Scheme Inc. will acquire Camelot Information Systems for 51.25 cents per share or $2.05 per ADS, each representing 4 shares. The consideration to be rewarded to shareholders implies an equity value for the company of approximately $98.2 million, on a fully diluted basis.
At the extraordinary general meeting, about 61% of the company's total outstanding shares voted in person or by proxy. Approximately 84% of the votes were affirmative and voted in favor of the proposal to authorize and approve the Merger Agreement.
New Ownership
Subsequent to the winding-up of the transactions contemplated under the Merger Agreement, the company will be beneficially owned by Simon Yiming Ma, the company's Chairman and Chief Executive Officer, Heidi Chou, the company's President, Yuhui Wang, the company's Executive Vice President, and 33 existing shareholders, who have chosen to terminate their rollover shares and subscribed to the newly issued shares of Camelot Employee Scheme.
Camelot Information Systems is a dominant provider of world-class business solutions and information technology (NYSE: IT) services to business corporations and financial institutions in China, Taiwan, Hong Kong and Japan. Over time, Camelot has been expanding its solution and service offerings through sustainable investments in developing proprietary solutions and establishing strategic partnerships with leading international IT product providers.
Camelot Information Systems currently holds a Zacks Rank #3 (Hold). Other stocks in the industry that look promising include Acxiom Corp. (NASDAQ: ACXM), Amdocs Ltd (NYSE: DOX) and CDW Corp. (NASDAQ: CDW), all of which carry a Zacks Rank #2 (Buy).
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