Qunar Cayman Islands (QUNR) followed Trina Solar (TSL), Qihoo 360 (QIHU), E-Commerce China Dangdang (DANG) and 21Vianet (VNET) to become the latest Chinese tech firm to consider going private, announcing it had received a bid Thursday from private-equity firm Ocean Management.
Qunar stock jumped Thursday on the news, jumping 10.9% to 29.29 on the stock market today, a day after shares touched an 18-month low of 25.75. Shares of Qunar partner and fellow China online travel firm Ctrip.com (CTRP) 1.4% to 40.65. Qunar stock, though, is down 50% so far this year, while Ctrip stock is down more than 10%.
Ctrip owns 45% of Qunar stock after a deal last year with Chinese internet giant Baidu (BIDU). Baidu has a 25% stake in Qunar. The Ocean Management proposal is to acquire all outstanding shares not already owned by significant shareholders.
Qunar said the bid values its stock at $30.39 in cash per American Depositary Share, or $10.13 per ordinary share, and is a 15% premium to Qunar's Wednesday closing price of 26.42. Ocean Management will pay for its acquisition through debt and equity capital.
Qunar's board formed a special committee to review the proposal.
Going private allows a company like Qunar to delist in the U.S. and relist in mainland China, where the stock market is volatile but growing. Chinese regulators have provided incentives for local listings.
