BEIJING, Nov. 13, 2018 /PRNewswire/ -- Renren Inc.
(NYSE: RENN) ("Renren"), which operates a social networking service
(SNS) business, used car business and SaaS business, today
announced that Beijing Qianxiang Wangjing Technology Development
Co., Ltd., a China-incorporated
subsidiary wholly controlled by Renren, has agreed to sell all
tangible and intangible assets in www.renren.com and its
related business ("Renren SNS business") to Beijing Infinities
Interactive Media Co., Ltd. (the "Buyer"), for a cash consideration
of US$20 million. Also in
consideration and as part of the foregoing asset sale, Infinities
Technology (Cayman) Holding Limited (the "Buyer Parent"), a
Cayman Islands company set up to become the parent entity of the
Buyer, has agreed to issue to Renren shares of the Buyer Parent
with a value of US$40 million based
on an agreed-upon estimated valuation of the Buyer Parent at
US$700 million.
A minority shareholder of the Buyer is Oak Pacific Holdings, a
company controlled by Mr. Joseph
Chen, Renren's Chairman and Chief Executive Officer, and Mr.
James Jian Liu, Renren's executive
director and Chief Operating Officer. This asset sale
transaction was discussed and approved by the audit committee of
Renren's board of directors, which considered the background and
material terms of this transaction as well as the result of a
fairness analysis conducted by Duff & Phelps, LLC, and was
submitted to and approved by Renren's board of directors.
Renren is confident that an asset sale is the most viable path
to dispose of its Renren SNS business and to set Renren onto its
next phase of growth. With the consummation of this transaction,
Renren will focus on its used car business in China, and its businesses outside China, notably the Trucker Path business and
the SaaS business in the United
States. Renren intends to remain listed on the NYSE.
"I am happy to find a home for renren.com," said Mr.
Joseph Chen, Renren's Chairman and
Chief Executive Officer, "Looking ahead, our company will be
serving global, vertical industries with internet and artificial
intelligence."
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a social networking service
(SNS) business, used car business and SaaS business. Renren's
American depositary shares, each of which represents fifteen Class
A ordinary shares, trade on the NYSE under the symbol
"RENN".
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Renren may also
make written or oral forward-looking statements in its filings with
the U.S. Securities and Exchange Commission (the "SEC"), in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Renren's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding these and other risks is included in our
annual report on Form 20-F, the 6-K referred to above and other
documents filed with the SEC. All information provided in this
press release is as of the date of this press release, and Renren
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
No Assurance
There can be no assurance that the proposed asset sale
transaction will be completed, nor can there be any assurance, if
the asset sale transaction is completed, that the potential
benefits of such transaction will be realized. The description of
the transaction contained herein is only a summary and is qualified
in its entirety by reference to the definitive agreements relating
to the asset sale transaction, copies of which will be filed by
Renren with the SEC as an exhibit to an Annual Report on Form
20-F.
For more information, please contact:
Investor Relations Department
Renren Inc.
Tel: (86 10) 8448 1818 ext. 1300
Email: ir@renren-inc.com
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SOURCE Renren Inc.