Chinese real estate service provider E-House (EJ) has agreed to acquire all outstanding shares of subsidiary China Real Estate Information Corp. (CRIC) it doesn't own (it presently has a 54.1% stake) for $1.75/share in cash and 0.6 E-House shares. The deal currently values CRIC at $4.30/share, a 5.6% premium to Tuesday's close.
Chinese real estate servicer E-House (EJ +11.8%) jumped today after making a bid for the remaining shares of China Real Estate Information (CRIC +17.2%) in a deal valued at about $960M. The company is already the majority shareholder, owning 54.1% of the total outstanding shares.
China Real Estate Information (CRIC +8.9%) drifting up on light volume; it's one of a few companies that are part of Baidu's (BIDU) recent strategic deals for premier partnerships and it has exclusive rights to sell Bidu's real estate brandlink product. It's a 2009 creation of units of E-House China (EJ) and Sina (SINA).
China Real Estate Information Corp. (CRIC) jumps up to 20% in its first day trading in New York. The company, created by the merger of E-House Holdings' (EJ) info business and Sina's (SINA) real-estate unit, sold 18M ADRs at the low end of its range to ensure investor interest. Goldman Sachs: BuyEJ since the spinoff will help accelerate growth.