A US investment firm says the latest offer to buy Chinese dating site Jiayuan still undervalues the company by over 50% .
Boston-based Heng Ren Investments invests in Chinese stocks listed on US exchanges, and has previously commented on another buyout offer for dating site Jiayuan.
Earlier this week, Jiayuan agreed to a deal from Baihe to buy the dating company for $7.56 per American Depositary Share and $5.04 per ordinary share.
Baihe said the deal, which values the company at $250m, was a 62.9% increase from the company’s share price on March 2nd, the day before Jiayuan received a “going private” proposal from Vast Profit Holdings.
At the time, Heng Ren said Vast Profit’s offer “substantially undervalues” the company, and should be raised by 119%.
And the investment bank believes the company is still undervalued in the latest Baihe deal, saying shares should be worth $11.74 per share, which is 55.3% higher than Baihe’s current buyout offer.
And Heng Ren also said that Jiayuan must now disclose to shareholders all the bids it has received for the company.
It admitted to receiving a number of buyout offers in a filing with the SEC on 29th May.
Peter Halesworth, Managing Partner at Heng Ren said: “To not fully disclose the content of bids is detrimental to shareholders. The sole purpose of the Special Committee is to optimize the value of a transaction for all shareholders.
“The possibility of these undisclosed bids being greater than the current undervalued bid — and this information being unknown to shareholders – is troubling and points to possible flaws in the process that could cost shareholders dearly.
“To preserve the trust of shareholders, and fulfill their fiduciary responsibility, Jiayuan.com’s Board of Directors needs to address this lack of disclosure immediately.”
Read the full SEC filing here.