Shares of Autohome Inc (ADR) (NYSE: ATHM), a China-based online destination for automobile consumers in China, were trading higher by around 0.5 percent Tuesday morning after the company announced it has formed a committee to evaluate a "going private" proposal.
On April 18, Autohome's CEO James Zhi Qin and a consortium of investors proposed a "going private" offer to acquire all the shares of the stock that they do not already own for $31.50 per ADS.
Autohome said on Tuesday its Board of Directors has formed a special committee consisting of three independent directors to consider the "going private" proposal. The committee will also retain independent legal and financial advisers to asset in evaluating the proposal.
Finally, Autohome noted that there are no assurances that any agreement will be executed. In addition, the company will not provide any updates unless it is required to do so under applicable law.
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