CDC Corporation's (CHINA) subsidiary China.com has filed an announcement with the Hong Kong GEM Market to get approval from its independent shareholders to purchase up to US$10 million of CDC Corporation's stock, which has plummeted about 60% over the last year.
In the filing, China.com stated that it has been exploring opportunities to enhance its investment yields and maximize shareholder value, and determined that a purchase of CDC Corporation shares would help achieve that goal.
Should China.com's independent shareholders approve the proposal to purchase these shares of CDC Corporation, China.com intends to form an independent committee of its board of directors. This committee will be authorized to set the price and volume limits for the share purchase plan which must be effective on or before September 30, 2008. Additionally, the per share purchase price limit must not exceed US$8 per share. A vote of China.com's independent shareholders on the proposal is expected to occur approximately 14 days after the Hong Kong GEM Market approves the informational materials to be distributed to shareholders.