KongZhong Receives Going Private Offer From CEO-led Group

(RTTNews) - Chinese online games publisher KongZhong Corp. (KZ) said Monday that its board of directors has received a preliminary non-binding proposal letter from Leilei Wang, chairman and chief executive officer of the company, and IDG-Accel China Growth Fund II L.P. to acquire all of the outstanding ordinary shares of the company not owned by them or their affiliates for US$8.56 in cash per American depositary share, or about US$0.2140 per ordinary share.

According to the proposal letter, the deal is intended to be financed with a combination of debt and/or equity capital. The proposal letter states that its proposal constitutes only a preliminary indication of its interest and is subject to the execution of definitive agreements relating to the proposed Transaction.

KongZhong said its board plans to form a special committee consisting of independent directors to consider the proposal.