Javelin Mortgage Investment Corp (NYSE:JMEI), China’s leading online retailer of beauty products, today announced that its board of directors (the “Board”) has received a non-binding proposal letter, dated February 17, 2016, from Mr. Leo Ou Chen, Founder, Chairman of the Board of Directors and CEO of the Company, Mr. Yusen Dai, Co-founder, Director and Vice President of Products of the Company, and the Sequoia funds, the existing shareholders of the Company (together, the “Buyer Group”), proposing a “going-private” transaction (the “Transaction”) to acquire all of the outstanding ordinary shares of Jumei not already owned by the Buyer Group for US$ 7.0 in cash per American depositary share (“ADS”), which represents a premium of 26.6% above the average closing price of the Company’s ADSs over the last 10 trading days.
The Buyer Group and their affiliates beneficially own an aggregate of approximately 54.4% of all of the Company’s issued and outstanding ordinary shares, which represent approximately 90.1% of the aggregate voting power of the Company.
According to the proposal letter, the Buyer Group intends to fund the consideration payable in the Transaction with a combination of debt and/or equity capital, and rollover equity in the Company. A copy of the proposal letter is attached as Annex A to this press release.
The Board cautions the Company’s shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company’s response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law. (Original Source)
Shares of Jumei International are up nearly 2% in early morning trading. JMEI has a 1-year high of $28.17 and a 1-year low of $4.90. The stock’s 50-day moving average is $6.79 and its 200-day moving average is $9.80.
On the ratings front, Goldman Sachs analyst Piyush Mubayi downgraded JMEI to Hold, with a price target of $12, in a report issued on November 2. The current price target represents a potential upside of 105.5% from where the stock is currently trading. According to TipRanks.com, Mubayi has a total average return of -0.6%, a 43.5% success rate, and is ranked #2083 out of 3610 analysts.
Jumei International Holding Ltd is an online retailer of beauty products. The product category includes cosmetics, skin care, cosmetic applicators, fragrance and body care.