Renren (RENN) – Odd Lot Tender Offer – minimal upside currently

Current Price – $2.66

Offer Price – $2.4 – $2.75

Upside – 3.4% or $10 (opportunity might improve before the offer expires)

Expiration date –  29 April 2015

SEC Filling

 

Summary:

We will purchase up to $50 million in value of ADSs in the Offer or such lower amount equal to the value of the ADSs properly tendered and not properly withdrawn. At the maximum Final Purchase Price of $2.75 per ADS, we could purchase 18,181,818 ADSs if the Offer is fully subscribed, which would represent approximately 14.1% of our 128,583,734 issued and outstanding ADSs and approximately 5.4% of our issued and outstanding share capital as of April 1, 2015. At the minimum Final Purchase Price of $2.40 per ADS, we could purchase 20,833,333 ADSs if the Offer is fully subscribed, which would represent approximately 16.2% of our issued and outstanding ADSs and approximately 6.1% of our issued and outstanding share capital as of April 1, 2015.

 

No proration for Odd Lot holders:

If, based on the Final Purchase Price, more than $50 million in value of ADSs are properly tendered and not properly withdrawn, we will purchase all ADSs tendered at or below the Final Purchase Price on a pro rata basis, except for “odd lots” (of less than 100 ADSs), which we will purchase on a priority basis.

 

Source of Funds:

The Offer is not subject to any financing condition. Assuming the Offer is fully subscribed, we expect the aggregate purchase price for the ADSs, together with related fees and expenses, to be approximately $50 million. We plan to fund any purchase of ADSs pursuant to the Offer, including the related fees and expenses, with available cash.