Tom Group's (TOMO) proposal of taking Tom Online private has been passed at the group's shareholder's meeting with 99.3% of the shareholders agreeing on the arrangement.
As proposed by Tom Group, the scheme shares will be canceled in exchange for HK$1.520 in cash for each scheme share. And after the privatization, Tom Online will withdraw from both Hong Kong stock market and Nasdaq. Tang Meijuan, CEO and executive director of Tom Group, told local media that no shareholder has any doubt about the price of the privatization so Tom Online will arrange a special shareholder meeting in June.
At present, Tom Group holds 2.8 billion shares of Tom Online, accounting for 65.73% of the firm's total shares. Tom Group said that they want take Tom Online private because the company needs a great deal of investment for expansion and after the privatization, it won't undertake any short-term pressure as an independently listed company in making long-term investment decisions.
