CDC Corporation Intends to Offer Class Common Shares of CDC Software

CDC Corporation announced , that it plans to file with the Securities and Exchange Commission a registration statement for an initial public offering of up to (U.S.) $225 million aggregate principal amount of Class A Common Shares of CDC Software, its business unit that develops enterprise software.

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The purpose of the offering is to allow CDC Software to more clearly differentiate its line of business from CDC Corporation and provide a more targeted investment vehicle for investors seeking to invest only in enterprise software portion of CDC Corporation's diverse businesses.

The offering is currently expected to commence during the fourth quarter of 2007, subject to the Securities and Exchange Commission declaring the registration statement effective.

The Class A Common Shares to be offered will have one vote per share. CDC Corporation will continue to hold supervoting Class B Common Shares of CDC Software which will have twenty votes per share. The Class B Common Shares will automatically and immediately convert into an equal number of Class A Common Shares upon a transfer to any person or entity that is not an affiliate of CDC Corporation. Class A Common Shares are not convertible into Class B Common Shares under any circumstances. Other than voting rights, the rights of the Class A Common Shares and Class B Common Shares will be essentially identical.

CDC Corporation currently anticipates that, in addition to CDC Software offering newly issued Class A Common Shares, CDC Corporation will also be a selling shareholder in the offering. -CDC corporation

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Posted August 22nd, 2007 by harminka