The Atlanta based company Middle Kingdom Alliance Corporation (OTCBB: MKGB, MKGBB, MKGBW, MKGDU and MKGBU) announced that it has entered an agreement that would merge the company with Pypo Digital Company Limited. Pypo is the leading distributor of mobile phones in China and is an international corporation that has two institutional shareholders: Golden Meditech, which is a Hong Kong investment company (8180.HK); and ARC Capital Holdings Limited, which is a London AIM-listed fund (ARCH.LN).
A Middle Kingdom shareholders meeting will be held to obtain approval for the merger. Pypo is prepared to purchase 10,000,000 of Middle Kingdom Alliance Class B shares at prices up to $8.40 a share. The merged company will be named Pypo China Holdings Limited and the new entity intends to apply for the listing on NASDAQ as soon as practicable following the closing of the merger.
Pypo is one of four national distributors of Samsung mobile phones in China and has an extensive distribution network that covers over 350 cities. The mobile phone industry is vastly becoming more popular in China and is expected to grow from 510 million today to over 1 billion in 2012.
Middle Kingdom, which was established in 2006 will have an estimated purchase price of $378 million is approximately 12.6x the size of Middle Kingdom’s IPO.
Let us hear your thoughts below:
