China Customer Relations Centers, Inc. (CCRC) announced a definitive merger agreement with Taiying Group Ltd and Taiying International Inc. after which the CCRC stock price saw a push of 13.35% to reach $6.37 a share on Friday’s pre-market as of this writing. At the previous closing, the CCRC stock price was up by 7.66%. Let’s have a look at the current scenarios.
China Customer Relations Centers, Inc is the leading eCommerce and business process outsourcing service provider for transportation and telecommunication companies and banks in China. The company entered into a definitive merger agreement with Taiying Group Ltd and its (Taiying Group Ltd) wholly-owned subsidiary Taiying International Inc.
According to the merger agreement, Taiying Group Ltd will own the company for US$6.50 per share price of cash payment.CCRC announced on November 30, 2020, that it has received a proposal to become a private entity, and before that announcement, CCRC’s closing price was US$4.72.The cash consideration of US$6.50 per share reflects the premium of 37.7% over the US$4.72 closing price. The buyer will beneficially own approximately 71.1% outstanding shares of the company. The merger is expected to close in the second quarter of 2021 and is subjected to various terms and conditions. China Merchants Bank Co., Ltd will provide a secured term facility to Taiying Group Ltd for the merger with specific terms and conditions.
CCRC in December announced the first half of 2020 financial results in which the company generated $97.72 million revenue with a 33.4% increase as compared to the same period of 2019. Gross profit and was increased by 38.9%to reach $25.91 million while Gross margin26.5% high as compared to the same period of the prior year. EPS was $0.56 while it was $0.27 in 2019.
CCRC stock has captivated the attention of investors as a definitive merger agreement has added more hype to the rising stock price. The company showed positive results for the first of 2020 while it has not announced the release date of earnings for the other half yet.