(By Balaseshan) Trunkbow International Holdings Ltd. (NASDAQ: TBOW), a provider of mobile payment solutions in China, said it has received a "going private" proposal from its chairman and chief executive officer.
The company's board has received a preliminary non-binding proposal letter, dated November 2, from its Chairman Hou Wanchun and its Chief Executive Li Qiang.
Wanchun and Qiang proposes a "going-private" transaction involving the acquisition of all of the company's outstanding common shares not beneficially owned by them at a price of $1.46 per share in cash.
According to the proposal letter, the acquisition is intended to be financed with a combination of debt and equity capital.
The company's board has formed a special committee of independent directors consisting of Tan Kokhui, Lv Tingjie, and Huang Zhaoxing to consider the acquisition. The special committee plans to retain financial, legal and other advisors to assist it in its review of the acquisition.
Trunkbow cautions its shareholders and others considering trading in its securities that the board of directors has just received the non-binding proposal from Wanchun and Qiang and no decisions have been made with respect to the company's response to the proposal.
Trunkbow develops and implement a range of platform solutions for its customers that enable mobile value-added solutions (MVAS) applications for their subscribers. Its solutions are classified into two categories: MVAS technology platforms and mobile payment solutions.
TBOW is trading up 4.28 percent at $1.22 on Friday. The stock has been trading between $0.77 and $2.41 for the past 52 weeks.