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Published on 2/16/2012 in the Prospect News Distressed Debt Daily.

CDC approved to sell CDC Software shares for $249.79 million

By Lisa Kerner

Charlotte, N.C., Feb. 16 - CDC Corp. was granted approval to sell its CDC Software shares for $249.79 million by the U.S. Bankruptcy Court for the Northern District of Georgia, according to an attorney familiar with the case.

As previously reported, CDC owns 100% of the shares of CDC Software International Corp.'s capital stock. In turn, CDC Software International owns 23.79 million class B ordinary shares in the capital of CDC Software Corp., or roughly 87% of CDC Software's outstanding share capital.

Vista Equity Holdings affiliate Archipelago Holding is the stalking horse bidder for the CDC Software share sale, according to the attorney. The proposed $249.79 million purchase price represents a price of $10.50 per share.

CDC and CDC Software International entered into the share purchase agreement with Archipelago on Feb. 1.

If CDC terminates the stalking horse agreement under a fiduciary out or a competing transaction, it will pay Archipelago a $9.99 million break-up fee, the attorney said.

The sale is subject to the solicitation of higher and otherwise better offers for the shares and a court-supervised auction and sale process.

CDC Corp., a Hong Kong- and Atlanta-based enterprise software and new media company, filed for bankruptcy on Oct. 4 in the U.S. Bankruptcy Court for the Northern District of Georgia. Its Chapter 11 case number is 11-79079.


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