People visit the stand of Qihoo 360 during the 2015 Appliance and Electronics World Expo in Shanghai, Mar 13, 2015.[Photo/IC]
Chinese internet security company Qihoo 360 Technology Co is set to return to A-share market through a backdoor listing after agreeing a 50.4 billion yuan ($7.61 billion) deal with elevator maker SJEC Corp.
SJEC said in a stock exchange statement on Friday that it would acquire Qihoo 360 through an asset swap and share issue which would allow for the internet security company’s backdoor A-share listing.
After the deal, Zhou Hongyi, chairman and CEO of Qihoo 360 will become the listed company’s controlling shareholder as he will hold 12.14 percent of its shares, and an additional 51.56 percent shares will be held by two other shareholders that he controls. SJEC said the deal was still subject to shareholder and regulators’ approval.
Qihoo 360 was listed in the United States in 2011, but it went private for about $9.3 billion in cash, delisting from US exchanges to sell equity locally at a higher valuation.