Sky-mobi Agrees To Be Taken Private For US$2.2/ADS

(RTTNews) - Sky-mobi Limited (MOBI), a mobile application platform and game publisher in China, said that it has entered into an Agreement and Plan of Merger with Amber Shining Investment Limited or "Parent", an exempted company with limited liability incorporated under the laws of the Cayman Islands and Power Rich Limited or "Merger Sub".

As per the Merger Agreement, at the effective time of the Merger, each of the Company's common shares issued and outstanding immediately prior to the effective time of the Merger will be cancelled and cease to exist in exchange for the right to receive US$0.275 per Share or US$2.2 per ADS, in each case, in cash and without interest.

The consideration of the Merger represents a premium of 25% over the Company's closing price of US$1.76 per ADS on June 22, 2016, the last trading day prior to the Company's announcement of its receipt of a "going-private" proposal.

The Buyer Group intends to fund the Merger with the proceeds from a committed loan facility in the amount of US$40 million arranged by China Merchants Bank Co., Ltd., New York Branch, pursuant to a debt commitment letter dated as of today.