Renren to dispose of all assets in SNS business to Beijing Infinities
Renren announced that Beijing Qianxiang Wangjing Technology Development Co., Ltd., a China-incorporated subsidiary wholly controlled by Renren, has agreed to sell all tangible and intangible assets in www.renren.com and its related business to Beijing Infinities Interactive Media Co., Ltd., for a cash consideration of $20M. Also in consideration and as part of the foregoing asset sale, Infinities Technology Holding Limited, a Cayman Islands company set up to become the parent entity of the Buyer, has agreed to issue to Renren shares of the Buyer Parent with a value of $40M based on an agreed-upon estimated valuation of the Buyer Parent at $700M. A minority shareholder of the Buyer is Oak Pacific Holdings, a company controlled by Joseph Chen, Renren's Chairman and Chief Executive Officer, and Mr. James Jian Liu, Renren's executive director and Chief Operating Officer. This asset sale transaction was discussed and approved by the audit committee of Renren's board of directors, which considered the background and material terms of this transaction as well as the result of a fairness analysis conducted by Duff & Phelps, LLC, and was submitted to and approved by Renren's board of directors.