Benzinga | Jan 21, 2021 07:33AM EST

TuanChe Announces Receipt Of Preliminary Non-Binding 'Going Private' Proposal From Chairman And CEO Wei Wen To Acquire All ADSs Not Currently Owned By Wen For $4.25/ADS.

BEIJING, Jan. 21, 2021 /PRNewswire/ -- TuanChe Limited ("TuanChe" or the "Company") (NASDAQ:TC), a leading omni-channel automotive marketplace in China, today announced that itsBEIJING, Jan. 21, 2021 /PRNewswire/ -- TuanChe Limited ("TuanChe" or the "Company") (NASDAQ:TC), a leading omni-channel automotive marketplace in China, today announced that its board of directors (the "Board") has received a preliminary non-binding proposal letter (the "Proposal") dated January 21, 2021 from its chairman and chief executive officer, Mr. Wei Wen ("Mr. Wen"), proposing to acquire all of the outstanding ordinary shares (the "Shares") of the Company, including Shares represented by American depositary shares (the "ADSs," each representing sixteen (16) Class A ordinary shares), that are not already owned by Mr. Wen for a purchase price of US$4.25 per ADS in cash in a going private transaction (the "Proposed Transaction"), subject to certain conditions. A copy of the Proposal is attached hereto as Annex A.

According to the Proposal, the Proposed Transaction is intended to be financed through debt and/or equity capital, where equity capital will be provided at least in part by Mr. Wen in the form of rollover equity in the Company.

The Board intends to form a special committee consisting of independent and disinterested directors to consider the Proposal. The Board expects that the special committee will retain independent advisors, including independent financial and legal advisors, to assist it in this process.

The Board cautions the Company's shareholders and others considering trading the Company's securities that the Board has just received the Proposal and has not had an opportunity to carefully review and evaluate the Proposal or make any decision with respect to the Company's response to the Proposal. There can be no assurance that any definitive offer will be made, that any definitive agreement will be executed relating to the Proposed Transaction or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.