The privatization offer is at a premium of 74.8%, what has CITIC's "grabbing" on Smart Share Global Ltd. Sponsored ADR Class A (EM.US) identified?

The premium rate is as high as 74.8%. Shortly after the New Year's bell rang, Smart Share Global Ltd. Sponsored ADR Class A (EM.US) announced that it had received a privatization offer from "Citic Capital" under Citic Capital and the Smart Share Global Ltd. Sponsored ADR Class A management, with both intending to acquire all the company's outstanding common stock for $1.25 in cash per American depositary share (ADS). The proposed price represents a premium of approximately 74.8% over the closing price of Smart Share Global Ltd. Sponsored ADR Class A prior to the announcement, and is also higher than the company's previous high price of $1.17 in 2024. This offer price indicates that external professional investment institutions recognize the investment value of Smart Share Global Ltd. Sponsored ADR Class A, as well as the company's management and Citic's commitment to protecting the interests of secondary market investors. In recent years, Chinese companies listed in the U.S. have faced increasingly complex and delicate situations in the capital market. Many leading companies in various industries have struggled in the U.S. stock market. On the one hand, overseas investors have limited knowledge of Chinese companies, resulting in undervaluation of many high-quality stocks, hindering further financing potential. On the other hand, influenced by investor preferences and other factors, many Chinese stocks have low trading volume, providing insufficient liquidity, rendering the significance of public trading meaningless. However, the joint proposal of privatization by Citic and Smart Share Global Ltd. Sponsored ADR Class A management with a high premium reflects the underlying logic from the perspective of professional investment institutions that the stock price of Smart Share Global Ltd. Sponsored ADR Class A has been undervalued in the long term and has not truly reflected the company's intrinsic value, nor has it brought positive value guidance. Choosing privatization can allow Smart Share Global Ltd. Sponsored ADR Class A to focus more on sustainable business development in the future and maximize benefits for all parties. Looking at the background of the tender offer, Citic Capital's involvement adds interest to Smart Share Global Ltd. Sponsored ADR Class A's privatization. Public information shows that Citic Capital originated from the private equity investment department of Citic Capital, known as the "Blackstone of China," which is one of the earliest alternative investment institutions in China engaged in merger and acquisition investments. Its star projects include McDonald's Corporation in China, SF Express, Alibaba Group Holding Limited Sponsored ADR, Sina, AsiaInfo, and Focus Media Information Technology. Especially in recent years, the performance of McDonald's Corporation in China has demonstrated to the world how the acquisition fund has revitalized the growth of a multinational company. From past cases, it is easy to see that consumption and technology are the two key areas of focus for Citic Capital, while Smart Share Global Ltd. Sponsored ADR Class A's positioning as a technology consumer company aligns perfectly. There are enough intersections in their respective company genes, and these similarities are expected to facilitate smooth cooperation between the two parties in the future. Looking back at Smart Share Global Ltd. Sponsored ADR Class A, as a rare listed company in the shared charging track, the company's operations combine stability and growth attributes. For example, based on the latest financial data for the second quarter of 2024, Smart Share Global Ltd. Sponsored ADR Class A's revenue was 463 million yuan, with an adjusted net profit of 15.2 million yuan under non-U.S. accounting standards (Non-GAAP), showing a sequential growth rate of 16.6% and 300%, respectively. Looking further back, Smart Share Global Ltd. Sponsored ADR Class A has maintained Non-GAAP profitability for six consecutive quarters. By the end of the second quarter of last year, the company had cash and cash equivalents, short-term investments, and restricted cash totaling 3.2 billion yuan, providing ample cash reserves for its future development. Looking ahead at the future, if the privatization is successful, Smart Share Global Ltd. Sponsored ADR Class A is expected to save costs and expenses related to compliance with stock listing regulations, potentially increasing the company's profitability further. Additionally, after privatization, Smart Share Global Ltd. Sponsored ADR Class A will benefit from faster decision-making and greater flexibility to focus on enhancing its core competitiveness and seizing new business opportunities. In conclusion, the privatization is expected to benefit all parties involved. It is worth mentioning that the tender offer from Citic Capital and the company's management is still a preliminary non-binding proposal. GMTEight will continue to monitor the progress of Smart Share Global Ltd. Sponsored ADR Class A's privatization.