SouFun Holdings (SFUN), a real estate Internet portal in China, Friday reported “subscription agreements” with IDG Capital Partners, and with entities affiliated the Carlyle Group, and with founder, Chairman and CEO Vincent Mo, in which between $400 million and $700 million (of which 50% will be convertible notes) will be raised to purchase SouFun’s newly issued class A ordinary shares and convertible notes.
Soufun said that under the subscription agreements, the subscription price of the new Class A ordinary shares is $5.85 per current ADS ($29.25 per Class A ordinary share), which is higher than the closing price of SouFun’s ADS as of September 16, 2015 and represents a 3.5% premium to the volume-weighted average trading price of the ADS for the 20 trading days preceding September 16, 2015.
Holders of the convertible notes will have the right to convert the Notes into Class A ordinary shares at the price per share equal to 122.5% of the per share purchase price of the new Class A ordinary shares in 7 years after the issuance of the Notes. The Notes shall bear an annual interest of 1.5%.
Soufun’s Chairman Mo said, “IDG and Carlyle’s financial commitment to Fang.com shows their confidence in Fang.com’s management. With the new investment, the company will be in a better position to strengthen its transformation. The company will expand aggressively to more cities and rapidly increase its market share in existing cities with its new transaction and financial service business lines.”
Companies: SouFun Holdings Limited
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