CDC buys back another $20 million 3.75% exchangeables at discount

By Susanna Moon

Chicago, March 23 - CDC Corp. said an affiliate of the company completed the purchase of another noteholder's 3.75% senior exchangeable convertible notes due 2011 at less than par.

The company said it bought the holder's entire holdings of more than $20 million.

With the close of Monday's purchases, the company will have purchased the holdings of seven of the 11 noteholders, at an average price below par.

The agreements with noteholders are consistent with company management's valuation estimate and the results of a previously reported valuation by a third-party independent consultant who valued the notes in the fourth quarter of 2008 at $0.76 per $1.00 principal amount.

"We are extremely pleased with this additional large purchase of company notes," Peter Yip, chief executive officer of CDC, said in the company's press release.

"We have been able to purchase our convertible notes at an average price that is a discount to par value, with no dilution of shareholder equity as a result of these transactions," Yip said. "As we have stated previously, we believe these negotiated purchases of notes below par value are fair for both parties in light of current overall economic conditions."

CDC is a Hong Kong-based provider of enterprise software, online games and internet and media services. It announced the possibility of a partial repurchase on Sept. 24.

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