SouFun Reports $400M-$700M Investment from IDG, Carlyle, Mgmt Members - Land.Net News
BEIJING, Sept. 18, 2015 /PRNewswire/ SouFun Holdings Limited (NYSE: SFUN)
("SouFun"), the leading real estate Internet portal in China, announced today
it entered into (i) a subscription agreement ( "IDG Subscription Agreement")
with IDG Alternative Global Limited, which is an affiliate of IDG Capital
Partners ("IDG") as of the date of IDG Subscription Agreement and (ii) a
subscription agreement ("Carlyle Subscription Agreement", together with IDG
Subscription Agreement, "Subscription Agreements") with Safari Group Holdings
Limited and Safari Group CB Holdings Limited, which are beneficially owned by
Carlyle Group ("Carlyle") as of the date of Carlyle Subscription Agreement. IDG,
Carlyle and the management (mainly founder and CEO Vincent Mo) will invest a
total amount between $400 million and $700 million (of which 50% will be
convertible notes) to purchase SouFun's newly issued Class A ordinary shares and
convertible notes ("Notes") pursuant to the Subscription Agreements.
Under the Subscription Agreements, the subscription price of the new Class A
ordinary shares is US$5.85 per current ADS (i.e. US$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%.
"IDG and Carlyle's financial commitment to Fang.com shows their confidence in
Fang.com's management," said Vincent Mo, Chairman and CEO of Fang.com. "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."