AutoNavi Gets Offer From Alibaba Group To Be Taken Private For $21/ADS In Cash

(RTTNews) - AutoNavi Holdings Limited (AMAP) a provider of digital map content and navigation and location-based solutions in China, announced Monday that its Board has received a non-binding proposal letter, dated February 10, 2014, from Alibaba Group Holding Limited, that proposes a "going-private" transaction to acquire all of the American depositary shares and ordinary shares of AutoNavi not already beneficially owned by Alibaba for $21 in cash per American depositary share, each representing four ordinary shares.

Alibaba beneficially owns preferred and ordinary shares of the Company representing approximately 28% of the Company's total issued and outstanding shares.

As per the proposal letter, Alibaba intends to fund 100% of the cash consideration payable in the Transaction with its cash on hand and the Transaction will not be subject to any financing condition.

AutoNavi stated that its board plans to promptly form a committee of independent directors to consider the Transaction. The Independent Committee will be authorized to retain advisors, including an independent financial advisor and legal counsel, to assist it in its work.

AutoNavi's Board cautioned the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from Alibaba 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.