E-House (China) Holdings Limited, leading real estate services company in China, has recently completed its new share issuance to the management team. As a result of this transaction, E-House issued 17,790,125 of its ordinary shares to the British Virgin Islands-registered company Kanrich Holdings Limited, which is owned by the key members of Chinese company’s management, for an aggregate purchase price of approximately US$62.6 million.
Upon completion of the transaction, the E-House management team receives combined stake in the company of approximately 31 per cent, thus becoming its largest shareholder as a group.
All the proceeds from the share issuance to the BVI company are to be used for repurchasing E-House’s ADS on the open market. The shares issued to Kanrich are subject to a 12 month lock-up period. This does not apply to the share charge created by Kanrich for the benefit of a third-party lender, which to the knowledge of the Company, entered into a margin loan facility agreement and related share and account charge with Kanrich to provide financing for the purchase of the new shares of the Company.