CDC Corporation Intends to Offer Class A Common Shares of CDC Software
Offering intended to carve out a portion of CDC Software to the public
HONG KONG, ATLANTA (August 20, 2007) –
CDC Corporation (NASDAQ: CHINA) announced today that it plans to file with the Securities and Exchange Commission a registration statement for an initial public offering of up to (U.S.) $225 million aggregate principal amount of Class A Common Shares of CDC Software, its business unit that develops enterprise software.
The purpose of the offering is to allow CDC Software to more clearly differentiate its line of business from CDC Corporation and provide a more targeted investment vehicle for investors seeking to invest only in enterprise software portion of CDC Corporation’s diverse businesses.
The offering is currently expected to commence during the fourth quarter of 2007, subject to the Securities and Exchange Commission declaring the registration statement effective.
The Class A Common Shares to be offered will have one vote per share. CDC Corporation will continue to hold supervoting Class B Common Shares of CDC Software which will have twenty votes per share. The Class B Common Shares will automatically and immediately convert into an equal number of Class A Common Shares upon a transfer to any person or entity that is not an affiliate of CDC Corporation. Class A Common Shares are not convertible into Class B Common Shares under any circumstances. Other than voting rights, the rights of the Class A Common Shares and Class B Common Shares will be essentially identical.
CDC Corporation currently anticipates that, in addition to CDC Software offering newly issued Class A Common Shares, CDC Corporation will also be a selling shareholder in the offering.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful. This announcement is being issued pursuant to and in accordance with Rule 135 under the Securities Act of 1933, as amended.
About CDC Software
CDC Software, The Customer-Driven Company(TM), is a provider of enterprise software applications designed to help organizations deliver a superior customer experience while increasing efficiencies and profitability. CDC Software’s product suite includes: CDC Factory (manufacturing operations management), Ross ERP (enterprise resource planning) and SCM (supply chain management), IMI warehouse management and order management, Pivotal CRM and Saratoga CRM (customer relationship management), Respond (customer complaint and feedback management), c360 CRM add-on products, industry solutions and development tools for the Microsoft Dynamics CRM platform, Platinum HRM (human resources) and business analytics solutions.
These industry-specific solutions are used by more than 6,000 customers worldwide within the manufacturing, financial services, health care, home building, real estate, and wholesale and retail distribution industries. The company completes its offerings with a full continuum of services that span the life cycle of technology and software applications, including implementation, project consulting, outsourced business services, application management and offshore development. CDC Software is the enterprise software unit of CDC Corporation (NASDAQ: CHINA) and is ranked number 12 on the Manufacturing Business Technology 2007 Global 100 List of Enterprise and Supply Chain Management Application vendors. For more information, please visit www.cdcsoftware.com.
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Mobile focused on mobile applications, CDC Games focused on online games, and China.com focused on portals for the greater China markets. For more information about CDC Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net.
Cautionary Note Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to the intention to file a registration statement with the SEC, the size of the proposed offering, the expected timing of the offering, the number of votes the Class B Common Shares will have, whether CDC Corporation would be a selling shareholder in any offering, and other statements that are not historical, the achievement of which involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. These statements are based on management’s current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, including the following: whether such an offering will be consummated, general capital market condition, the conditions of the public market for enterprise software companies, the future growth of the enterprise software market, and the entry of new competitors and their technological advances. Further information on risks or other factors that could cause results to differ is detailed in filings or submissions with the United States Securities and Exchange Commission made by CDC Corporation in its Annual Report for the year ended December 31, 2006 on Form 20-F filed on July 2, 2007. All forward-looking statements included in this press release are based upon information available to management as of the date of the press release, and you are cautioned not to place undue reliance on any forward looking statements which speak only as of the date of this press release. The company assumes no obligation to update or alter the forward looking statements whether as a result of new information, future events or otherwise.
For More Information
Media Relations
Scot McLeod
CDC Software
770-351-9600
ScotMcLeod@cdcsoftware.com
Media Relations
Monish Bahl
CDC Corporation
(678) 259-8510
monishbahl@cdcsoftware.com
Source: CDC Software
