Fang Holdings Limited (SFUN) announced that with the approval of its audit committee and board of directors, it has entered into an agreement with Next Decade Technology Limited and Media Partner Investments Limited which are affiliated companies of Fang's chairman Vincent Mo to acquire certain equity interests in China Index Holdings (CIH).
Fang agrees to buy and the sellers agree to sell, within the next 12 months, at a fixed price of $5.99 per share, in an aggregate up to 15M ordinary shares of CIH beneficially owned by the sellers in the agreement.
According to the agreement, Fang will have the absolute and sole discretion to determine the number of shares to purchase, the timing of the purchase, and whether a single or a series of transactions. Both parties also agree that Fang will not seek to gain a controlling voting power in CIH as a result of the proposed transaction unless it is approved separately by the audit committee and the board of directors of each of Fang and CIH.
China Index Holdings closed Tuesday down 13c to $2.97.
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