Alibaba may take AutoNavi private in $1.58 billion deal
Alibaba Group is offering to take Chinese digital mapping and navigation company AutoNavi private in a deal that would value the company worth around $1.58 billion. AutoNavi is going to form a committee of independent directors to consider the proposal.
Alibaba said that they would pay $21 per American depository share ($5.25 per ordinary share). Each of the ADS represents four ordinary shares. Alibaba’s proposal assumes 300.4 million outstanding ordinary shares of AutoNavi Holdings.
Alibaba’s selling point is that AutoNavi now has competitors that are bigger and are well-capitalized. Alibaba already owns 28% of AutoNavi’s outstanding stock. Alibaba is only interested in an acquisition and is not planning to sell their stake in AutoNavi to a third party.
[Source: ABC News]
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