BEIJING, Nov. 28, 2011 /PRNewswire-Asia-FirstCall/ -- IFM Investments Limited (the "Company," "Century 21 China Real Estate" or "CTC") (NYSE: CTC), a leading comprehensive real estate services provider and the exclusive franchisor for the CENTURY 21® brand in China, today announced that it has signed a non-binding term sheet with E-House ( China) Holdings Limited ("E-House") (NYSE: EJ), a leading real estate services company in China, and the Company's founders, under the terms of which Century 21 China Real Estate will issue approximately 960 million new Class A ordinary shares to E-House and the founders of Century 21 China Real Estate at $0.0267 per share, or $0.40 per American depositary share ("ADS"). Each ADS represents 15 ordinary shares of CTC.
Pursuant to the terms of the proposed transaction, Century 21 China Real Estate will receive a total consideration of $25 million from E-House and the founders of Century 21 China Real Estate. The total number of new shares issued will represent approximately 57.8% of Century 21 China Real Estate's post-issuance enlarged share capital on a fully diluted basis. Upon closing of the proposed transaction, E-House will become Century 21 China Real Estate's largest shareholder with a 37.3% ownership stake. Century 21 China Real Estate's founders will acquire an additional 20.5% equity share on a fully diluted basis, with their subscription of new Class A ordinary shares being financed by E-House. The final shareholding split between E-House and Century 21 China Real Estate's founders is subject to minor adjustments prior to the closing of the proposed transaction.
"The proposed transaction is a win-win partnership between two of China's leading real estate service providers," said Donald Zhang, chairman and chief executive officer of Century 21 China Real Estate. "In addition to strengthening Century 21 China Real Estate's financial position during the current industry downturn, this partnership should enable us to provide a more fully integrated service offering that is better adapted to evolving market conditions.""The proposed transaction is a clear demonstration of commitment from the founders of Century 21 China Real Estate to the future of our business," Mr. Harry Lu, vice chairman and president of Century 21 China Real Estate, added. "Building on the competitive strengths of both companies, we are confident that this alliance will transform the future landscape of the real estate service industry in China." The closing of the proposed transaction is subject to customary due diligence procedures, approval by the boards of directors of both companies, and the signing of definitive transaction documents between E-House, Century 21 China Real Estate and the Company's founders.
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