Two failed venture Gong Haiyan with cabbage price sold Jiayuan

Abstract: as the founder of

, facing the privatization offer such a low price, Gong Haiyan also chose not to go on fighting, retreats. In early March 2, 2015, Manulife funds have been acquired from Aprilsky Jiayuan 8003763 ordinary shares, so far, Gong Haiyan completely withdraw from the capital level jiayuan.


before IPO, the founder of lost control of the century, eventually, may be a "cabbage price" privatization, leaving the capital market.

the evening of March 3rd, Jiayuan announced joint venture capital fund, Manulife received (Vast Profit Holdings) privatization offer the price per ADS (American Depositary Shares) $5.37 in cash. Jiayuan March 2nd shares closed at $4.64, the price premium ratio is 15.7%.

The reason most of the

shares in private, is nothing more than the price is low, the capital market as a low value of financing channels, for the company’s brand, "listed company" is no longer a piece for the endorsement of a gilded signboard Shanda, Focus Media, such as, Jiayuan as well. After IPO, Jiayuan by U.S. investors questioned the "single profit model, membership read income accounted for total revenue 90%, prolonged slump in the share price, market capitalization from IPO of $330 million, fell to $149 million in March 3, 2015, the additional possibility of refinancing will be minimal. In this case, to give up the status of the listed companies, the growth of capital markets, stock prices and earnings bound, to rethink the company strategy, it is really good.

even so, privatization offer launched as a non founding team but capital institutions, so the price is very low, almost the price of cabbage. From the earnings report, Jiayuan recent performance is not bad, the 2014 Q1~Q3 quarter, its revenue increased by 20.5%, 21.8% and 25.5% respectively in 2014, total revenue should be around $100 million, its gross margin is around 60%. In Jiayuan March 3rd worth US $149 million, 15% of the premium is only about $170 million, and the account has $90 million in cash, equivalent to Manulife fund only paid $80 million for the quarter, the average growth rate of 20%.

face the privatization offer price, if the major shareholders will be powerful enough, and resolutely resist. However, for the privatization offer, company management’s attitude is fairly gentle and friendly, it has indicated that the problem of large shareholders think that this price can sell enough OK, Jiayuan.

Jiayuan CEO Wu Linguang released internal e-mail, said the company has yet to make a decision to invite. Wu Linguang also said, "no matter whether the offer is executed, the capital level of company business work, there will only be positive.

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