0001144204-16-109771.txt : 20160624 0001144204-16-109771.hdr.sgml : 20160624 20160624160729 ACCESSION NUMBER: 0001144204-16-109771 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20160624 DATE AS OF CHANGE: 20160624 GROUP MEMBERS: MICHAEL TAO SONG GROUP MEMBERS: MOBI JOY LTD SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SKY-MOBI Ltd CENTRAL INDEX KEY: 0001500252 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-85980 FILM NUMBER: 161731164 BUSINESS ADDRESS: STREET 1: 10/F, Building B, United Mansion STREET 2: No. 2, Zijinhua Road, Hangzhou CITY: Zhejiang STATE: F4 ZIP: 310013 BUSINESS PHONE: 8657187770978 MAIL ADDRESS: STREET 1: 10/F, Building B, United Mansion STREET 2: No. 2, Zijinhua Road, Hangzhou CITY: Zhejiang STATE: F4 ZIP: 310013 FORMER COMPANY: FORMER CONFORMED NAME: PROFIT STAR LTD DATE OF NAME CHANGE: 20100830 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Xplane Ltd. CENTRAL INDEX KEY: 0001511418 IRS NUMBER: 000000000 STATE OF INCORPORATION: D8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: ROMASCO PLACE, WICKHAMS CAY 1 STREET 2: P.O.BOX 3140, ROAD TOWN CITY: TORTOLA STATE: D8 ZIP: VG1110 BUSINESS PHONE: (852)2524-7106 MAIL ADDRESS: STREET 1: ROMASCO PLACE, WICKHAMS CAY 1 STREET 2: P.O.BOX 3140, ROAD TOWN CITY: TORTOLA STATE: D8 ZIP: VG1110 SC 13D 1 v442798_sc13d.htm SC 13D

 

CUSIP No. 83084G 109 SCHEDULE 13D Page 1 of 13

 

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

______________________

 

SCHEDULE 13D

 

 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

______________________

 

SKY-MOBI LIMITED
(Name of Issuer)

 

______________________

 

Common Shares, par value $0.00005 per share
(Title of Class of Securities)

 

83084G 109*
(CUSIP Number)

 

 

Mr. Michael Tao Song

 c/o Sky-mobi Limited

10/F, Building B, United Mansion

 No. 2 Zijinghua Road

Hangzhou, Zhejiang 310013

 People’s Republic of China

Telephone: +86.571.8777.0978 

With a copy to

 Ms. Fang Xue

Gibson, Dunn & Crutcher LLP

Unit 1301, Tower 1, China Central Place,

 No. 81 Jianguo Road

Beijing 100025

 People’s Republic of China

Telephone: +86.10.6502.8500 

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

June 23, 2016
(Date of Event which Requires Filing of this Statement)

 

______________________

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this
Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨

 

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See § 240.13d -7 for other parties to whom copies are to be sent.

 

 

 

_________

*This CUSIP applies to the Issuer’s American Depositary Shares, each representing eight common shares.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section of the Exchange Act but shall be subject to all other provisions of the Exchange Act (however, see the Notes). 

 

 

  

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 2 of 13

 

1

NAMES OF REPORTING PERSONS

 

Mobi Joy Limited

 

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

(a) x (b) o

 

3

SEC USE ONLY

 

4

SOURCE OF FUNDS

 

OO

 

5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

 

o

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

British Virgin Islands

 

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH

 

7

SOLE VOTING POWER

 

50,647,288 common shares

 

8

SHARED VOTING POWER

 

-0-

 

9

SOLE DISPOSITIVE POWER

 

50,647,288 common shares

 

10

SHARED DISPOSITIVE POWER

 

-0-

 

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

50,647,288 common shares

 

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

 

o

 

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

20.9%*

 

14

TYPE OF REPORTING PERSON

 

CO

 

       

* Percentage calculated based on the total number of 241,833,347 common shares outstanding as of June 24, 2016, including outstanding unvested restricted shares that entitle the holders thereof to vote such shares.

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 3 of 13

1

NAMES OF REPORTING PERSONS

 

Xplane Ltd.

 

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

(a) x (b) o

 

3

SEC USE ONLY

 

4

SOURCE OF FUNDS

 

OO

 

5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

 

o

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

British Virgin Islands

 

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH

7

SOLE VOTING POWER

 

64,950,744 common shares.

 

8

SHARED VOTING POWER

 

-0-

 

9

SOLE DISPOSITIVE POWER

 

64,950,744 common shares

 

10

SHARED DISPOSITIVE POWER

 

-0-

 

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

64,950,744 common shares

 

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

 

o

 

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

26.9%*

 

14

TYPE OF REPORTING PERSON

 

CO

 

       

* Percentage calculated based on the total number of 241,833,347 common shares outstanding as of June 24, 2016, including outstanding unvested restricted shares that entitle the holders thereof to vote such shares.

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 4 of 13

1

NAMES OF REPORTING PERSONS

 

Michael Tao Song

 

2

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

 

(a) x (b) o

 

3

SEC USE ONLY

 

4

SOURCE OF FUNDS

 

OO

 

5

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)

 

o

 

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

People’s Republic of China

 

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH

7

SOLE VOTING POWER

 

53,047,2881 common shares

 

8

SHARED VOTING POWER

 

-0-

 

9

SOLE DISPOSITIVE POWER

 

53,047,2881 common shares

 

10

SHARED DISPOSITIVE POWER

 

-0-

 

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

53,047,2881 common shares

 

12

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES

 

o

 

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11

 

21.9%*

 

14

TYPE OF REPORTING PERSON

 

IN

 

       

1 Based on (i) 50,647,288 common shares held by Mobi Joy Limited, (ii) 960,000 common shares in the form of American Depository Shares held by Michael Tao Song, and (iii) 1,440,000 unvested restricted shares held by Michael Tao Song.

 

* Percentage calculated based on the total number of 241,833,347 common shares outstanding as of June 24, 2016, including outstanding unvested restricted shares that entitle the holders thereof to vote such shares.

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 5 of 13

 

This statement on Schedule 13D (the “Schedule 13D”) is being jointly filed by Mobi Joy Limited (“Mobi Joy”), Michael Tao Song (“Mr. Song”) and Xplane Ltd. (“Xplane,” together with Mobi Joy and Mr. Song, the “Reporting Persons”). This Schedule 13D amends the information concerning Mobi Joy and Mr. Song in the statement on Schedule 13D jointly filed by Mobi Joy and Mr. Song with the Securities and Exchange Commission (the “SEC”) on April 17, 2013.

 

Item 1. Security and Issuer

 

The class of equity securities to which this Schedule 13D relates is the common shares, par value $0.00005 per share (the “Common Shares”), including Common Shares represented by American Depositary Shares (each representing eight Common Shares), of Sky-mobi Limited (the “Issuer”). The Issuer’s principal executive office is located at 10/F, Building B, United Mansion, No. 2 Zijinghua Road, Hangzhou, Zhejiang 310013, People’s Republic of China.

 

Item 2. Identity and Background

 

(a)-(c) and (f)  

The Reporting Persons are jointly filing this Schedule 13D pursuant to Rule 13d-1(k) promulgated by the SEC under Section 13 of the Exchange Act.  The Reporting Persons are making this single, joint filing because they may be deemed to constitute a “group” within the meaning of Section 13(d)(3) of the Exchange Act with respect to the transaction described in Item 4 of this Schedule 13D . 

 

   

Mr. Song is a citizen of the People’s Republic of China and his principal occupation is chief executive officer and chairman of the board of directors of the Issuer. Mr. Song’s business address is 10/F, Building B, United Mansion, No. 2 Zijinghua Road, Hangzhou, Zhejiang 310013, People’s Republic of China. Mr. Song is a director of Xplane.

 

   

Mobi Joy, a company incorporated under the laws of the British Virgin Islands, is wholly owned by Mr. Song. Mobi Joy’s principal business is that of an investment holding company. Mobi Joy’s principal business address is Romasco place, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands, VG1110. Mr. Song is the sole director of Mobi Joy.

 

   

Xplane, a company incorporated under the laws of the British Virgin Islands, is the Issuer’s parent company. Xplane’s principal business is that of an investment holding company. Xplane’s principal business address is Romasco Place, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands, VG1110. Xplane has three directors, all of whom are listed here in this Item 2.

 

   

Mr. Yan Tang (“Mr. Tang”) is a director of Xplane. Mr. Tang is a citizen of the People’s Republic of China and is currently self-employed. Mr. Tang’s residential address is No. 398 Wen San Road, Xihu District, Hangzhou, Zhejiang 310000, People’s Republic of China.

 

   

Mr. Li Ou (“Mr. Ou”) is a director of Xplane and a former chief technology officer of the Issuer. Mr. Ou is a citizen of the People’s Republic of China and is currently self-employed. Mr. Ou’s residential address is Room 102, Shu Guang Village 3, No. 11, Xihu District, Hangzhou, Zhejiang 310000, People’s Republic of China.

 

(d)-(e)

 

  During the past five years, none of the Reporting Persons nor, to the knowledge of the Reporting Persons, any person listed in this Item 2, (i) has been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

  

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 6 of 13

 

Item 3. Source and Amount of Funds or Other Consideration

 

The Reporting Persons anticipate that, at the price per Common Share set forth in the Proposal (as described in Item 4 below), approximately $32,507,315 would be expended in acquiring 124,053,067 Common Shares owned by shareholders of the Issuer, representing all Common Shares outstanding (including Common Shares represented by American Depository Shares) and Common Shares subject to share-based awards of the Company outstanding as of June 24, 2016, other than those already owned by the Reporting Persons. This amount excludes costs and expenses associated with the Transaction (as defined below).

 

It is anticipated that the funding for the Transaction will be provided by a combination of equity and/or debt financing.

 

The information set forth in or incorporated by reference in Items 4 and 5 of this Schedule 13D is incorporated by reference in its entirety into this Item 3.

 

Item 4. Purpose of Transaction

  

On June 23, 2016, the Reporting Persons submitted a preliminary, non-binding proposal (the “Proposal”) to the Issuer’s board of directors. Under the Proposal, the Reporting Persons propose to acquire (the “Transaction”), through an acquisition vehicle formed by them, all of the outstanding Common Shares (including Common Shares represented by American Depositary Shares) of the Issuer not already owned by the Reporting Persons for $2.10 per American Depositary Share, or approximately $0.2625 per Common Share, in cash, representing a premium of 19.32% to the closing price of the Issuer’s American Depositary Shares on June 22, 2016.

 

The Proposal also provides that, among other things, the Reporting Persons will (a) together with their financing sources, conduct customary due diligence on the Issuer, and (b) negotiate definitive transaction agreements with respect to the Transaction that will provide for representations, warranties, covenants and conditions which are typical, customary and appropriate for transactions of this type.

 

The foregoing summary of certain provisions of the Proposal is not intended to be complete. References to the Proposal in this Schedule 13D are qualified in their entirety reference to the Proposal itself, a copy of which is attached hereto as Exhibit 2 and incorporated herein by reference as if set forth in its entirety.

 

If the Transaction is completed, the American Depositary Shares would be delisted from the NASDAQ Global Market and the Issuer’s obligation to file periodic reports under the Exchange Act would terminate. In addition, consummation of the Transaction could result in one or more of the actions specified in clauses (a) through (j) of Item 4 of Schedule 13D, including the acquisition or disposition of securities of the Issuer, a merger or other extraordinary transaction involving the Issuer, a change to the Issuer’s board of directors (as the surviving company to the merger), and a change in the Issuer’s memorandum and articles of association to reflect that the Issuer would become a privately held company. No assurance can be given that any proposal, any definitive agreement or any transaction relating to the Transaction will be entered into or be consummated. The Proposal provides that no binding obligation on the part of the Issuer or the Reporting Persons shall arise with respect to the Transaction unless and until definitive transaction agreements have been executed.

 

The Reporting Persons reserve their right to change their plans and intentions in connection with any of the actions discussed in this Item 4 including, among other things, the purchase price for the Transaction and the debt and/or equity financing arrangements. Any action taken by the Reporting Persons may be effected at any time or from time to time, subject to any applicable limitations imposed thereon by any applicable laws.

 

Except as set forth in this Item 4 or as would occur upon completion of any of the matters discussed herein, none of the Reporting Persons have any present plans or proposals which relate to or would result in any of the actions specified in clauses (a) through (j) of Item 4 of Schedule 13D. The Reporting Persons may, at any time and from time to time, formulate other purposes, plans or proposals regarding the Issuer, or any actions that could involve one or more of the types of transaction or have one or more of the results described in paragraphs (a) through (j) of Item 4 of Schedule 13D.

 

Item 5. Interest in Securities of the Issuer

 

(a), (b) The following table sets forth the beneficial ownership of Common Shares of the Issuer for each of the Reporting Persons.

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 7 of 13

 

Reporting Person  Amount beneficially owned:(1) (in Common
Shares)
   Percent
of class:(2)
   Sole power
to vote or
direct
the vote:
(in Common Shares)
   Shared power to vote or to direct the vote: (in Common Shares)   Sole power to dispose or to direct the disposition of: (in Common Shares)   Shared power to dispose or to direct the disposition of: (in Common Shares) 
Mobi Joy   50,647,288    20.9%   50,647,288    0    50,647,288    0 
Xplane   64,950,744    26.9%   64,950,744    0    64,950,744    0 
Mr. Song (3)   53,047,288    21.9%   53,047,288    0    53,047,288    0 

 

(1)Beneficial ownership is determined in accordance with Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

 

(2)Percentage calculated based on the total number of 241,833,347 Common Shares outstanding as of June 24, 2016, including outstanding unvested restricted shares that entitle the holders thereof to vote such shares.

 

(3)Includes (i) 50,647,288 Common Shares held by Mobi Joy Limited, (ii) 960,000 Common Shares in the form of American Depository Shares held by Mr. Song, and (iii) 1,440,000 unvested restricted shares held by Mr. Song.

 

Due to the nature of the transactions described in Item 4, the Reporting Persons may be deemed to be part of a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with each other. Except as disclosed in Schedule 13D , each Reporting Person hereby expressly disclaims beneficial ownership of any Common Shares beneficially owned by any of the other Reporting Persons or any other person, and does not affirm membership in a “group” (within the meaning of Rule 13(d)-5 of the Exchange Act) with any of the other Reporting Persons or any other person.

 

(c) Except as set forth in this Item 5, no Reporting Person has effected any transaction in the Common Shares during the 60 days preceding the filing of this Schedule 13D .

 

(d) Not Applicable.

 

(e) Not Applicable.

 

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

  

The information set forth in Items 3 and 4 is hereby incorporated by reference in this Item 6.

 

On June 24, 2016, the Reporting Persons entered into an agreement with respect to the joint filing of this Schedule 13D and any amendments thereto (the “Joint Filing Agreement”). A copy of the Joint Filing Agreement is attached as Exhibit 1 to this Schedule 13D and is incorporated by reference herein.

 

Except as set forth herein, there are no contracts, arrangements, understandings or relationships among the persons named in Item 2 above and between any such persons and any person, with respect to securities of the Issuer.

 

Item 7. Material to be Filed as Exhibits

 

1.Joint Filing Agreement, dated as of June 24, 2016, by and among Michael Tao Song, Mobi Joy Limited, and Xplane Ltd.

 

2.Proposal, dated as of June 24, 2016 from Michael Tao Song, Mobi Joy Limited, and Xplane Ltd. to the board of directors of Sky-mobi Limited.

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 8 of 13

 

SIGNATURE

 

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

Dated: June 24, 2016

 

  Mobi Joy Limited
   
  By: /s/ Michael Tao Song  
    Michael Tao Song
  Title: Director
   
   
  Xplane Ltd.
   
  By: /s/ Michael Tao Song  
    Michael Tao Song
  Title: Director
   
   
  Michael Tao Song
   
  By: /s/ Michael Tao Song  
    Name: Michael Tao Song
   

 

 

 

 

Signature Page to Schedule 13D 

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 9 of 13

 

INDEX TO EXHIBITS

 

1.Joint Filing Agreement, dated as of June 24, 2016, by and among Michael Tao Song, Mobi Joy Limited, and Xplane Ltd.

 

2.Proposal, dated as of June 24, 2016 from Michael Tao Song, Mobi Joy Limited, and Xplane Ltd. to the board of directors of Sky-mobi Limited.

 

 

  

 

 

EX-99.1 2 v442798_ex99-1.htm EXHIBIT 1

CUSIP No. 83084G 109 SCHEDULE 13DPage 10 of 13

 

Exhibit 1

 

JOINT FILING AGREEMENT

 

In accordance with Rule 13d-1(k) of the Securities Exchange Act of 1934, as amended, the undersigned agree to the joint filing on behalf of each of them of a Statement on Schedule 13D (including any and all additional amendments thereto) with respect to the common shares of Sky-mobi Limited and further agree that this joint filing agreement (this “Agreement”) shall be included as an Exhibit to such joint filing. Each person further agrees as follows:

 

1. Each person executing this Agreement is responsible for the timely filing of such Schedule 13D and any subsequent amendments thereto, and for the completeness and accuracy of the information concerning such person contained therein; but no person executing this Agreement is responsible for the completeness or accuracy of the information concerning any other persons making the filing, unless such person knows or has reason to believe that such information is inaccurate.

 

2. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same instrument.

 

Remainder of Page Intentionally Left Blank

 

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 11 of 13

 

IN WITNESS WHEREOF, the undersigned hereby execute this Agreement as of June 24, 2016 

 

 

  Mobi Joy Limited
   
  By: /s/ Michael Tao Song  
    Michael Tao Song
  Title: Director
   
   
  Xplane Ltd.
   
  By: /s/ Michael Tao Song  
    Michael Tao Song
  Title: Director
   
   
  Michael Tao Song
   
  By: /s/ Michael Tao Song  
    Name: Michael Tao Song
   

 

  

 

 

EX-99.2 3 v442798_ex99-2.htm EXHIBIT 2

CUSIP No. 83084G 109 SCHEDULE 13DPage 12 of 13

  

Exhibit 2

 

Proposal

 

 

June 23, 2016

The Board of Directors

Sky-mobi Limited

10/F, Building B, United Mansion

No. 2, Zijinghua Road, Hangzhou

Zhejiang 310013

People’s Republic of China

 

Dear Members of the Board:

 

We, Mr. Michael Tao Song, Xplane Limited and Mobi Joy Limited, are pleased to submit this preliminary non-binding proposal to acquire all of the outstanding common shares (including American Depositary Shares (“ADS”), with each ADS representing eight common shares) of Sky-mobi Limited (the “Company”) not already owned by us in a going private transaction (the “Transaction”) described below. We currently beneficially own approximately 54.3% of the issued and outstanding common shares of the Company.

 

We believe our proposal provides a very attractive opportunity for the Company’s shareholders. Our proposal represents a premium of approximately 19.32% to the closing price of the ADSs on June 22, 2016. We are confident that the Transaction can be closed on a highly expedited basis as outlined in this letter.

 

Set forth below are the key terms of our proposal.

 

1.Purchase Price. The purchase price payable will be $2.10 per ADS or approximately $0.2625 per common share in cash, in each case other than for the ADSs or common shares directly or indirectly held by us.

 

2.Financing. We intend to finance the Transaction with a combination of debt and/or equity capital.

 

3.Due Diligence. We believe that we and our financing sources will be able to complete customary due diligence for the Transaction in a timely manner and in parallel with negotiation of transaction agreements.

 

4.Definitive Agreements. We have engaged Gibson Dunn & Crutcher LLP as our international legal counsel and are prepared to promptly negotiate and finalize definitive transaction agreements (the “Definitive Agreements”) in respect of the Transaction. These agreements will provide for representations, warranties, covenants and conditions which are typical, customary and appropriate for transactions of this type.

 

5.Process. Given our involvement in the Transaction, we believe it is prudent and in the best interests of the Company for the Company’s Board of Directors to establish a special committee to consider the Transaction (the “Special Committee”). We also expect that the Special Committee would retain independent advisors to assist it in its work. In considering our offer, you should be aware that we are interested only in acquiring the outstanding shares of the Company that we do not already beneficially own, and that we do not intend to sell our stake in the Company to a third party.

 

6.Confidentiality. We will, as required by law, promptly file an amendment to Mr. Michael Tao Song’s Schedule 13D with the Securities and Exchange Commission to disclose this letter. We are sure you will agree, however, that it is in all of our interests to ensure that we proceed in a strictly confidential manner, unless otherwise required by law, until we have executed the Definitive Agreements or terminated our discussions.

 

 

CUSIP No. 83084G 109 SCHEDULE 13DPage 13 of 13

 

7.No Binding Commitment. This proposal is not a binding offer, agreement or agreement to make a binding offer or agreement at any point in the future. This letter is a preliminary indication of interest by us and does not contain all matters upon which agreement must be reached in order to consummate the Transaction, nor does it create any binding rights or obligations in favor of any person. The parties will be bound only upon the execution of any Definitive Agreements.

 

8.Governing Law. This letter shall be governed by, and construed in accordance with, the internal laws of the State of New York.

 

In closing, we would like to express our commitment to working with you to bring the Transaction to a successful and timely conclusion. Should you have any questions regarding this proposal, please do not hesitate to contact us. We look forward to hearing from you.

 

Sincerely,

 

Michael Tao Song
 
/s/ Michael Tao Song
 
 
Xplane Limited
 
By: /s/ Michael Tao Song
Name:  Michael Tao Song
Title: Authorized Signatory
 
 
Mobi Joy Limited
 
By: /s/ Michael Tao Song
Name:  Michael Tao Song
Title: Director