Mergers & Acquisitions ·
Mangrove Coast Investment proposes $6.03 per ADS cash deal for X Financial
XYFX Financial
Mangrove Coast Investment Limited submitted a preliminary non-binding proposal to acquire all outstanding ordinary shares of X Financial not beneficially owned by Mangrove, offering US$1.005 in cash per ordinary share or US$6.03 in cash per American depositary share (ADS). The offer represents a premium of 28.3% and 25.1% to the closing price on the last trading day and the volume-weighted average closing price during the last 30 trading days, respectively. Mangrove holds approximately 93.45% of the total voting power of the Company’s issued and outstanding shares. Mr. Yue (Justin) Tang, X Financial’s Chairman and CEO, is affiliated with Mangrove and will recuse himself from Board deliberations regarding the proposal. The Board intends to form a special committee of independent directors to evaluate the offer and retain independent financial and legal advisors. There is no assurance that a definitive agreement will be executed or that the transaction will be consummated. X Financial operates in the consumer finance industry, providing digital lending services.