Best has formed a special committee consisting of three independent directors to evaluate and consider the preliminary proposal.
On November 7th, BEST Inc. announced that its board of directors has received a preliminary non-binding proposal from the company’s founder, Chairman, and CEO Zhou Shaoning. The proposal includes a buyer consortium led by Zhou Shaoning intending to acquire all issued ordinary shares of BEST Inc., including Class A ordinary shares represented by ADS (American Depositary Shares), for a cash consideration of $0.144 per share ($2.88 per ADS).
According to the proposal, Zhou Shaoning, Chief Strategy Officer and Chief Investment Officer of BEST Inc., Zhou Shaojian, Danish Logistics Technology Investment Company, Alibaba Group Holding Limited, and Cainiao Smart Logistics Investment Limited plan to acquire all issued ordinary shares of BEST Inc. (including Class A ordinary shares represented by ADS) that are not currently held by the buyer consortium at a price of $0.144 per share of common stock ($2.88 in cash per ADS).
The Buyers Alliance stated in the proposal that they plan to finance this potential transaction with equity (extended term shares) and cash from BEST Inc.
BEST Inc. also announced that the company’s board of directors has established a special committee consisting of three independent directors to evaluate and review the proposal and potential transaction. The three independent directors are Wenbiao Li, Ying Wu, and Klaus Anker Petersen, with Ying Wu serving as the chairman of the special committee.
The board cautioned shareholders and potential investors that there is no guarantee a definitive offer will be made or that an agreement relating to the proposed transaction will be finalised. It pledged to provide updates on the situation as required under applicable law.
Best, listed on the New York Stock Exchange, is a big player in the logistics sector in China and Southeast Asia, offering services including freight delivery, supply chain management, and global logistics services powered by its proprietary technology platform.
The proposed buyout from Cainiao, one of six units being spun off from Alibaba amid a group-wide restructuring, comes after it filed in September for an initial public offering (IPO) in Hong Kong that could raise more than US$1 billion.
Cainiao has also made other moves this year, including an expansion of its express delivery services.