Renren Receives "Going Private" Proposal From CEO, COO

(RTTNews) - Renren Inc. (RENN) said Wednesday that its Board of Directors has received a non-binding proposal letter, dated June 10, from Joseph Chen, Chairman of the Board and Chief Executive Officer of the company, and James Jian Liu, a member of the Board and Chief Operating Officer of the company, proposing a "going-private" deal to acquire all of the outstanding ordinary shares of the company not already owned by Chen or Liu for US$4.20 in cash per American depositary share, or US$1.40 per ordinary share.

Chen and Liu currently beneficially own about 32% of ordinary shares of the company, representing about 49% in the company's shareholder voting power.

According to the proposal letter, Chen and Liu plan to fund the consideration payable in the deal with a combination of debt and equity capital, and rollover equity in the company.

The company said its Board plans to form a special committee consisting of independent directors to consider the proposal.