Shares surge as founder and Alibaba make cash offer
- BEST Inc. ADSs rise over 10% in premarket trading
- Received non-binding buyout proposal from group including founder and Alibaba
- Group would pay $2.88 per ADS in cash, a 21% premium to Friday’s closing price
- Special committee formed to evaluate and consider the proposal
American depositary shares of BEST Inc. surged over 10% in premarket trading after the company announced it had received a non-binding buyout proposal. The proposal, made by a group that includes BEST’s founder and Chinese tech giant Alibaba, offers to pay $2.88 per ADS in cash, representing a 21% premium to Friday’s closing price. BEST has formed a special committee to evaluate and consider the proposal, which currently owns a 49% stake in the company and holds 94% of its voting power. The news has caused BEST ADSs to rise 12% to $2.68 in premarket trading.
Factuality Level: 8
Factuality Justification: The article provides factual information about BEST Inc. receiving a non-binding buyout proposal from a group that includes its founder and Alibaba. It also mentions the proposed price per ADS and the members of the buyout group. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. However, it lacks some background information about BEST Inc. and the potential implications of the buyout proposal.
Noise Level: 7
Noise Justification: The article provides relevant information about BEST Inc. receiving a buyout proposal from a group that includes its founder and Alibaba. It also mentions the proposed price per ADS and the composition of the buyout group. However, it lacks analysis of long-term trends or antifragility, and does not hold powerful people accountable or explore the consequences of the decision. The article stays on topic and supports its claims with information about the company’s stock price. Overall, the article contains some noise and lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the stock market and companies involved in the supply-chain services industry, particularly BEST Inc. and Alibaba.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: This news article is relevant to financial topics as it discusses a buyout proposal for BEST Inc. by a group that includes Alibaba. The proposal has led to a significant increase in BEST Inc.’s stock price. However, there is no mention of any extreme event or its impact in the article.
Public Companies: BEST Inc. (BEST), Alibaba (BABA)
Private Companies: Denlux Logistics Technology Invest,BJ Russell Holdings,Cainiao Smart Logistics Investment
Key People: Shao-Ning Johnny Chou (Founder, Chairman, and Chief Executive of BEST Inc.), George Chow (Chief Strategy and Investment Officer of BEST Inc.)
Reported publicly:
www.marketwatch.com 
