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SINA And DongXiang Enter Into Agreements To Acquire Shares Of Mecox Lane And Memorandums Of Understanding For Strategic Cooperation

Stocks in this article: MCOX

SHANGHAI, China, March 1, 2011 (GLOBE NEWSWIRE) -- Mecox Lane Limited ("Mecox Lane" or the "Company") (Nasdaq:MCOX), which operates one of China's leading online platforms for apparel and accessories, today announced that SINA Corporation ("SINA") (Nasdaq GS: SINA) and a subsidiary of China Dongxiang (Group) Co., Ltd. ("DongXiang") (HKG 3818) entered into separate agreements to acquire an aggregate of 117,505,755 ordinary shares (equivalent to 16,786,535 ADSs) of Mecox Lane from two major shareholders of Mecox Lane, Maxpro Holdings Limited and Ever Keen Holdings Limited, both wholly owned by Sequoia Capital (collectively "Sequoia"). Each of Mecox Lane's ADSs trading on the Nasdaq Global Market represents seven ordinary shares.

Under the share purchase agreements, SINA will purchase 76,986,529 ordinary shares (equivalent to 10,998,075 ADSs), or approximately 19% of the issued and outstanding shares of Mecox Lane, and DongXiang will purchase 40,519,225 ordinary shares (equivalent to 5,788,460 ADSs), or approximately 10% of the issued and outstanding shares of Mecox Lane (collectively, the "Sale Shares"). The purchase price is US$0.8571 per share, equivalent to US$6.00 per ADS.  The selling shareholders also agreed to grant SINA and DongXiang options to purchase 48,254,173 ordinary shares (equivalent to 6,893,453 ADSs) and 18,306,117 ordinary shares (equivalent to 2,615,159 ADSs) of Mecox Lane, respectively. The options are exercisable during a two-year period starting from the closing date of the above share purchases and the exercise price is US$1.1429 per ordinary share, equivalent to US$8.00 per ADS. 

Upon the closing of share purchases, a representative from SINA will be appointed as a director of Mecox Lane and Mr. Kelvin Yu, a vice president with Sequoia will resign from the board. Each of SINA and DongXiang will be subject to a one-year lock-up with respect to the Sale Shares, starting from the closing date of the share purchases.  Sequoia will also be subject to 180-day lock-ups starting from the closing date of the share purchases, for their respective remaining shares in Mecox Lane. 

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