News
John Smaug
- November 06, 2023
American depositary shares of BEST Inc. experienced a significant increase of more than 10% in premarket trading on Monday. This surge came in response to the announcement that the pioneer in supply-chain services had received a non-binding buyout proposal. The group behind the proposal includes Alibaba, the Chinese tech giant, and the company's founder, Shao-Ning Johnny Chou. Notably, this consortium currently holds approximately a 49% stake in BEST Inc. and controls around 94% of its voting power.
As per the buyout proposal, the group plans to acquire the remaining shares of BEST Inc. for $2.88 per ADS in cash, representing an impressive premium of nearly 21% compared to Friday's closing price of $2.39.
Apart from Alibaba and Shao-Ning Johnny Chou, other members of the buyout group consist of George Chow, the chief strategy and investment officer at BEST Inc.; Denlux Logistics Technology Invest; BJ Russell Holdings; and Cainiao Smart Logistics Investment.
Recognizing the significance of the proposal, BEST Inc. has established a special committee comprising three independent directors. This committee will evaluate and carefully assess the buyout offer put forth by the consortium.
The positive response to this development is evident as BEST ADSs have recently surged by 12% to reach $2.68 in premarket trading.
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