ELong, one of China’s largest online travel services, today announced that its board of directors have received a privatization offer from existing shareholder Tencent, which hopes to acquire all remaining shares in the company. 

Tencent offered shareholders $18 per American Depositary Receipt (ADR), a 27 percent premium to Monday’s closing price in New York, according to a statement on PR Newswire. Elong’s ADRs slid 1.9 percent to $14.22 USD in Monday trading in New York before the company’s statement. Tencent currently holds around 15.0% of the aggregate voting power of the company.

The Board intends to form a special committee to consider the proposal and plans to authorize the special committees to retain legal and financial advisors to assist it in evaluating the transaction. 

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Eva Yoo

Eva Yoo is Shanghai-based tech writer. Reach her at evayoo@technode.com