BEIJING, March 19, 2015 /PRNewswire/ — eLong, Inc. (NASDAQ: LONG), a leading mobile and online travel service provider in China, today announced that it entered into a share transfer agreement (the "Share Transfer Agreement") with respect to Nanjing Xici Information Technology Share Co., Ltd. ("Nanjing Xici").
On March 19, 2015, eLong, Inc., through its wholly-owned subsidiary eLongNet Information Technology (Beijing) Co., Ltd. and a consolidated affiliated company (together, "eLong"), entered into the Share Transfer Agreement with ADDOR Capital Management Co., Ltd. and its subsidiary Jiangsu Zijin Huiwen Media Investment Co., Ltd. ("JZH Media"), pursuant to which JZH Media will acquire a 90% equity interest and all assets relating to eLong’s Nanjing Xici business for a purchase price of RMB76.5 million (US$12.2 million). Nanjing Xici operates a regional BBS business in Jiangsu Province, China. Immediately prior to entering into the Share Transfer Agreement, eLong and Nanjing Xici employees owned 95.05% and 4.95%, respectively, of Nanjing Xici. The Share Transfer Agreement also provides that eLong will transfer its remaining 5.05% equity interest in Nanjing Xici to employees of Nanjing Xici upon JZH Media’s payment of the full purchase price.
eLong currently expects the transactions contemplated by the Share Transfer Agreement to be completed in the fourth quarter of 2015, and intends to use the funds received by eLong from the transactions for general corporate purposes.
Safe Harbor Statement
Statements in this press release concerning eLong’s expectations as to the completion of the transactions contemplated by the Share Transfer Agreement are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995.These forward-looking statements are based upon management’s current expectations with respect to future events, and therefore you should not place undue reliance on them. Such forward-looking statements involve inherent risks and uncertainties, and in particular the risk that the transactions contemplated by the Share Transfer Agreement will not be completed as planned.
Further information regarding risks faced by eLong in its business is included in eLong’s filings with the U.S. Securities and Exchange Commission, including eLong’s Annual Report on Form 20-F filed on March 13, 2015.
About eLong, Inc.
eLong, Inc. (Nasdaq: LONG – News) is a leader in mobile and online accomodations reservations in China offering consumers a network of more than 400,000 properties worldwide. eLong technology enables travelers to book hotels, guesthouses, apartments and other accommodations, as well as air and train tickets, through convenient mobile and tablet applications (m.eLong.com), websites (www.eLong.com), 24 hour customer service, and easy to use tools such as destination guides, maps and user reviews. eLong’s largest shareholders are Expedia, Inc. (Nasdaq: EXPE) and Tencent Holdings Ltd. (HKSE: 0700).
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