China Customer Relations Centers, Inc. Announces Receipt of Preliminary Non-Binding "Going Private" Proposal and Formation of Special Committee

Rhea-AI Summary

China Customer Relations Centers, Inc. (CCRC) has received a preliminary non-binding proposal from its founder and certain affiliates to acquire all outstanding shares not owned by them at $5.37 per share. A special committee of independent directors has been formed to evaluate the proposal with the assistance of financial and legal advisors. The Board warns shareholders that no decision has been made regarding the proposal and no assurance can be given that the transaction will proceed. CCRC specializes in e-commerce and financial services BPO in China.

Positive

• Formation of a special committee to evaluate acquisition proposal indicates proactive governance.
• Acquisition proposal offers a cash buyout price of $5.37 per share, potentially providing liquidity to shareholders.

Negative

• Proposal is preliminary and non-binding, with no guarantee of a definitive offer.
• Uncertainty surrounding the proposal may lead to volatility in stock price.

TAI'AN, China, Nov. 30, 2020 /PRNewswire/ -- China Customer Relations Centers, Inc. (Nasdaq: CCRC) ("CCRC" or the "Company"), a leading e-commerce and financial services business process outsourcing ("BPO") service provider in China, today announced that its board of directors (the "Board") has received a preliminary non-binding proposal letter dated November 27, 2020 jointly submitted by its founder and chairman of the Board, Mr. Zhili Wang, Mr. Debao Wang, Mr. Guoan Xu, Mr. Qingmao Zhang, Mr. Long Lin, Mr. Jishan Sun and their respective affiliated entities (collectively, the "Buyer Group"), to acquire all of the outstanding shares of the Company not already owned by the Buyer Group in a going private transaction for $5.37 per share in cash (the "Proposal"). A copy of the proposal letter is attached hereto as Annex A.

CCRC's Board has formed a special committee of independent and disinterested directors (the "Special Committee") consisting of Tianjun Zhang, Owens Meng, and Jie Xu with Tianjun Zhang servicing as the chairman of the Special Committee, to consider the Proposal. The Special Committee has retained Houlihan Lokey (China) Limited as its financial advisor and Hogan Lovells as its international legal counsel in connection with its review and evaluation of the Proposal.

The Board cautions the Company's shareholders and others considering trading in the Company's securities that no decision has been made on the response to the Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

About China Customer Relations Centers, Inc.

The Company is a leading e-commerce and financial services BPO service provider in China focusing on the complex, voice-based and online-based segments of customer care services, including:

• customer relationship management;
• technical support;
• sales;
• customer retention;
• marketing surveys; and
• research.

The Company's service is currently delivered in Provinces of Shandong, Jiangsu, Henan, Guangdong, Yunnan, Hubei, Sichuan, Hebei, Anhui, Xinjiang, Guangxi, Jiangxi, Heilongjiang, and Chongqing. More information about the Company can be found at: www.ccrc.com.

Safe Harbor Statements

Certain statements contained in this announcement may be viewed as "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. The Company undertakes no ongoing obligation, other than that imposed by law, to update these statements.

For further information, please contact

Sherry Zheng
Weitian Group LLC  
Email: shunyu.zheng@weitian-ir.com  
Phone: +1-718-213-7386

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SOURCE China Customer Relations Centers, Inc.

FAQ

What is the recent acquisition proposal for CCRC?

CCRC received a preliminary non-binding proposal to acquire all outstanding shares not owned by the Buyer Group at $5.37 per share.

Who is evaluating the acquisition proposal for CCRC?

A special committee of independent and disinterested directors has been formed to evaluate the proposal.

What is the significance of the $5.37 per share offer for CCRC shareholders?

The $5.37 per share offer represents a potential cash buyout price for shareholders, providing liquidity.

Is CCRC obligated to accept the acquisition proposal?

No, CCRC's Board has not made any decision on accepting the proposal and no assurance can be given that a definitive offer will be made.

What type of services does CCRC provide?

CCRC specializes in e-commerce and financial services BPO, including customer relationship management and technical support.