BEIJING, May 20 /PRNewswire-Asia/ -- The following letter was sent by Jacky Tung of Best Prospect to Qindai Wang, Chairman of Hurray! (Nasdaq: HRAY) responding to the Hurray!’s press release issued on May 14.
Best Prospect Overseas Limited
May 20, 2009
Mr. Qindai Wang
Chairman of the Board of Directors
Hurray! Holding Co., Ltd.
15/F, Tower B, Gateway Plaza
No. 18 Xia Guang Li, North Road
East Third Ring, Chaoyang District
Beijing 100027, China
Dear Mr. Wang:
On May 14, Hurray! issued a press release regarding certain discussions that supposedly took place concerning our withdrawn offer. The May 14 press release contains a number of errors and misrepresentations. First of all, you never discussed any of the issues raised in the May 14 press release with us. In fact, you ignored our good faith attempts to discuss our withdrawn offer with you. Had you been willing to engage in a meaningful discussion with us, all of your concerns would have been addressed. Secondly, the most glaring error in the May 14 press release is the question regarding our ability to fund our withdrawn offer. We explicitly stated in our written communication to you that our offer is not contingent on funding. We had documentation to evidence our ability to fully fund our withdrawn offer. Such documentation was and still is available for your review upon request, but you never even discussed your purported funding concern with us. Instead, contrary to the facts and to the detriment of productive discussions, you seem to have assumed that our withdrawn offer had no funding.
Additionally, we have received a number of comments and questions from your shareholders that deserve your response. Some of your shareholders assert that they have repeatedly asked these questions to you and have not received any response. We are asking these questions to you again.
1. Why is it that you and your Board did not complete a share buyback --
when the price was close to $1.00 -- in order to maximize shareholder
value?
2. In your last two press releases, you indicated that you are evaluating
strategic alternatives to maximize shareholder value. Have you engaged
an internationally recognized investment bank to assist you in
evaluating your options? Have you created a competitive process by
soliciting competing offers to maximize value to shareholders? Have
you, as reported in the local media, signed any unusually long
exclusivity arrangements with other parties and rendered Hurray!
unmarketable for an unusually long period of time, and have you avoided
disclosing this material information to your shareholders in violation
of U.S. securities laws?
3. Is the Board or certain members of the Board placing self interests
above shareholder interests? We recently received an e-mail from a
person who claims to be a Hurray! shareholder alleging that a certain
Hurray! Board member bought a significant amount of American Depositary
Shares during the period of discussions with Best Prospect. Are you
aware of this claim and if so, have you taken steps to investigate the
alleged matter? Does this have anything to do with your decision not to
publicly disclose any agreements for exclusive negotiations with a
bidder and your refusal to respond to your shareholders and other
acquisition proposals? Furthermore, is this the reason you were so
adamant during our negotiations that the directors’ insurance be
extended from the standard one year to two years?
As we mentioned in previous communication with you, we continue to see Hurray! as an attractive growth opportunity if managed properly. However, you, as Chairman and head of the Board committee that is reviewing strategic alternatives, must step down from the Board, and we require the same of every other Board member who is acting against your shareholders’ interests.
Sincerely,
Jacky C. F. Tung
On behalf of Best Prospect Overseas Limited
For more information, please contact:
Xiong Can
Mobile: +86-139-1136-9097
