Despite the turbulence in the Chinese markets, "go-private" offers continue, with the latest being an offer for eLong Inc. (LONG)
These offers continue to roll in even though the Chinese authorities temporarily have suspended initial public offerings on their exchanges. So, the act of going private and then re-listing in China or Hong Kong is uncertain, at least as far as timing is concerned.
eLong, one of China's online travel companies that trade on our shores, just received a go-private offer from Tencent Holdings Limited (TCEHY), which already owns a stake in LONG, for $18 per American depositary share (1 ADS equals 2 local shares). That offer price represents a 24% premium to LONG's closing price last night.
I guess the Chinese are seeing value when investors stateside are unable to do so at the moment. Good for them.
Tencent Holdings currently owns about 15% of the voting power of eLong. In addition, about 37% of LONG is owned by Ctrip.com (CTRP), which announced results last night that came in well ahead of Street expectations both for the June quarter (regarding earnings per share) and for revenue guidance going forward. That 37% stake was purchased from Expedia (EXPE) in May, when EXPE was looking for an exit.
Expedia's results late last week and CTRP's results last night should bode well for Priceline Group (PCLN) tomorrow.
Words to the wise.