QUNR

Qunar Caym Isl Shs -B- Sponsored American Deposit Share Repr 3 Shs -B-

TMT, Consumer


Presented:10/29/2015
Price:$48.54
Cap:$9.58B
Current Price:$30.41
Cap:$4.43B

Presented

Date10/29/2015
Price$48.54
Market Cap$9.58B
Ent Value$3.21B
P/E RatioN/A
Book Value$2.55
Div Yield0%
Shares O/S197.35M
Ave Daily Vol2,019,307
Short Int14.61%

Current

Price$30.41
Market Cap$4.43B
Qunar Cayman Islands Ltd. engages in the provision of travel and tourism services through an online commerce platform. It operates through the following segments: Hotel and Travel Agent Services; Advertising; and Group Sales. It offer pay-for-performance, display advertising, and online services which includes flight and hotel bookings, travel packages, group-buying deals, visa, and other travel related products and services . The company was founded by Chen Chao Zhuang on July 31, 2006 and is headquartered in Beijing, China.

Publicly traded companies mentioned herein: Qunar (QUNR), Ctrip.com (CTRP) and Baidu (BIDU).

Highlights

The presenter regards Qunar as one of the most interesting near term actionable ideas in his book. Along with Ctrip’s (CTRP) recent announcement that it has acquired Baidu’s (BIDU) 45% stake in Qunar, it was announced that Qunar management, who collectively own approximately 13% of the company, also now have the “tag-along” right previously held by BIDU. This means that Qunar management has the option to convert its shares into Ctrip stock at a set exchange rate, but management has indicated that it will not seek to do so until it has secured the approval of a majority of minority shareholders. The exchange ratio for the deal is .725 shares of Ctrip for each share of Qunar, which would imply a $65 stock - or an approximate 50% premium to where Qunar trades today. 

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Idea Discussion

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