CDC Corp. Provides Estimate of its 3.75 Percent Senior Exchangeable Convertible Notes Due 2011 at $0.82 per $1.00 of Par Value
February 14 2011 - 9:15AM
Business Wire
CDC Corporation (NASDAQ: CHINA), a leading China-based
value-added operator of, and growth investor in, hybrid
(SaaS/On-Premise) enterprise software, IT Services, and New Media
assets, today announced that, based upon application of Statement
of Financial Accounting Standards No. 157, "Fair Value
Measurements" (SFAS 157) and certain other assumptions and
limitations inherent in the valuation process of its 3.75 Percent
Senior Exchangeable Convertible Notes Due 2011 (the “Notes”), and
consistent with the results from an independent third party
consultant, the Company believes that the fair value measurement of
the Notes, as of Dec. 31, 2010, was approximately $0.82 per $1.00
of par value.
Under generally accepted accounting principles, the Company is
required to disclose the fair value of its financial instruments,
both assets and liabilities, including the Notes. SFAS 157 provides
guidance on how companies should establish the fair value of their
assets and liabilities.
To date, an affiliate of CDC Corporation has repurchased an
aggregate of $126.8 million in principal amount of the Notes.
About CDC Corporation:
CDC Corporation is a China-based value-added operator of, and
growth investor in, hybrid (on premise and SaaS) enterprise
software, IT, and new media businesses. The company pursues two
value-added investment strategies. The first strategy includes
actively managing majority interests in its core portfolio of
hybrid enterprise software, IT services and New Media businesses,
adding value by driving operational excellence, top-line growth and
overall profitability. The second strategy includes identifying and
executing on opportunities to co-invest with leading venture
capital and private equity funds through minority interests in
fast growth companies in emerging markets related to CDC
Corporation’s core assets. This second strategy, which complements
the first, helps to mitigate risk and enhance deal flow for the
company. CDC Corporation expects to deliver superior returns and
additional value for its shareholders through these strategies. 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, including statements relating to, among other
things, our beliefs regarding the fair value measurement of the
Notes, as of Dec. 1, 2010, and other statements which are not
historic fact. 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: (a) risks
associated with the Notes, including the potential outcome of
disagreements with the note holders, the risks associated with the
amendments of the Notes and the validity of the holder redemption
put provisions of the Notes, and the risks regarding potential
amounts we may be required to pay under the Notes, including
amounts which could be in excess of the face value of the Notes;
(b) the results, and effect, of any litigation that we, or any of
our subsidiaries or affiliates may face; (c) risks regarding our
ability to realize strategic objectives by taking advantage of
market opportunities in targeted geographic markets; (d) the
ability to make changes in business strategy, development plans and
product offerings to respond to the needs of current, new and
potential customers, suppliers and strategic partners; (e) the
ability to integrate operations or new acquisitions in accordance
with the company's and its subsidiaries’ business strategies; (f)
the effects of restructurings and rationalization of operations;
(g) the ability to address technological changes and developments
including the development and enhancement of products; (h) the
ability to develop and market successful products and services; and
(i) the entry of new competitors and their technological advances
into the marketplace. Further information on risks or other factors
that could cause results to differ is detailed in our filings or
submissions with the United States Securities and Exchange
Commission, including our Annual Report on Form 20-F for the year
ended December 31, 2009, filed with the Commission on June 30,
2010, and those of our subsidiary, CDC Software Corporation. 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. Historical results are not
indicative of future performance.
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