Ecommerce titan Alibaba took a 28 percent stake in Autonavi (NASDAQ:AMAP) nearly a year ago. And then in February this year the firm proposed a full buy-out of Autonavi for a premium of US$21 per share.
Today Autonavi confirmed it has accepted the deal for that acquisition price, pending the approval of shareholders. Autonavi closed trading yesterday at $20 per share. For shareholders it’s a large premium over the $16.54 value per share when it was first proposed in February.
The deal values Autonavi at $1.5 billion and will take the firm – owners of China’s top mobile maps app (pictured above) – private. It’s not yet clear how this will be incorporated into Alibaba’s upcoming US IPO. The deal will be closed later this year.