Nasdaq is losing its status in China. KongZhong, which went public as a mobile value-added service company in 2004, is now going private after morphing over the years into an online game company.
KongZhong Corporation announced that during the latest extraordinary general meeting, the company's shareholders approved its privatization agreement reached in December 2016.
On December 1, 2016, KongZhong announced that it had reached a definitive privatization agreement with Linkedsee Limited and Wiseman International Limited, a wholly-owned subsidiary of Linkedsee, and KongZhong would be acquired by an investor consortium in an all-cash transaction with a transaction value of approximately USD299 million.
According to the privatization agreement, the investor consortium would acquire KongZhong's issued shares that were not already owned by the consortium for USD7.55 per ADS, which was about USD0.18875 per ordinary share.
Members of the investor consortium include KongZhong's chairman and CEO Wang Leilei, Gongqingcheng Wujiang Xingyao Investment Management Partnership, Hexie Chengzhang Phase II (Yiwu) Investment Center, and other related affiliates.
On the completion of the transaction, KongZhong will become a private holding company and its ADS will be delisted from Nasdaq.