Giant network clarifies some false news on the internet

The Giant Network (NYSE:GA) today issued a notice to clarify some of the false news on the Internet, involving Yunfeng funds, investment in Alibaba Group, independence of Jiangnan Spring, and non-binding privatisation offers.

The following is the full text of the announcement (from the American Communication Society):

The giant believes that the January 3, 2014 article on the Internet contains a number of false information and distorted interpretations of facts, including but not limited to the following:

I. Yunfeng FUND

Yunfeng is a private equity fund created by a successful Chinese entrepreneur, Mr. Ma and Mr Shong. The Yunfeng Fund, as the general partner of a series of funds, manages a total of about 1.8 billion dollars, with about 80 limited partners throughout the fund. Yunfeng Fund's first fund Yunfeng fund L.P. Established in June 2010. Mr. Shi Yuzhu and some 20 famous Chinese entrepreneurs, senior managers and investors, including Mr. Jason, have become their limited partners. These financial investors were once known as "founding limited partners" by the Yunfeng Fund.

After that, Mr. Shi Yuzhu personally also invested in some other funds administered by the Yunfeng Fund, all of which are limited partners. However, Shi Yuzhu or Mr. Jason has never served as a general partner or director of the Yunfeng Fund or any fund administered by it.

Yunfeng Fund L.P. All relevant investment decisions are made by the Yunfeng Fund, the general partner. Shi Yuzhu or Mr. Jason is not the Yunfeng fund managers or directors, and has never participated in the Yunfeng fund management, decision-making or governance, they only enjoy the financial investors limited partner rights and interests.

Ii. Investment in Alibaba Group

As disclosed in the company's September 2011 Bulletin and SEC document, the giant invested $50 million in Alibaba Group through the Yunfeng e-commerce fund, which was administered by the Yunfeng Fund and was set up specifically to invest in Alibaba Group shares in Yunfeng. In addition to the Giants, the Yunfeng E-commerce fund has about 11 other limited partners, the Giants in which the investment accounted for about 10%. Mr. Shong resigned as a giant director before the giant made the investment in June 2011. Moreover, the investment decision of the Yunfeng e-commerce Fund was approved by the giant Board of Trustees.

In response to the SEC's regular submissions on July 26, 2012, the giant provided the following additional information about indirect investments in Alibaba Group: (i) describe the risk of indirectly holding Alibaba Group shares through the Yunfeng e-commerce fund; (ii) Description of the total of 8.2 million RMB in 2011 ( Of the $1.3 million trillion in investment losses, 77% came from a one-time management fee from the Yunfeng e-commerce fund that was apportioned to the Giants.

In addition, as the Giants 2012 financial statements show, as of December 31, 2012, the Giants in the Yunfeng E-commerce fund investment valuation increased to 60.5 million U.S. dollars (mainly reflects the company held by the end of 2012 holdings of Alibaba Group shares of the outstanding holding of assets proceeds). According to the latest information, the Giants believe that the investment has increased further, far exceeding the initial investment value after deducting the relevant costs.

Iii. independence of Mr. Jason

Mr. Jason has never served as a general partner or director of the Yunfeng Fund or any fund under its administration. Mr. Jason alone in the Yunfeng fund L.P. As a limited partner, as the Shi Yuzhu is a financial investor, does not enjoy any management rights or other decisions.

Mr. Jason or Shi Yuzhu himself did not invest in Yunfeng electronic Commerce Fund, but because Yunfeng fund L.P. Yunfeng is a limited partner of the e-commerce fund, and Mr. Jason and Mr. Shi Yuzhu have indirectly become the financial investors of Yunfeng Electronic Commerce Fund, holding about 0.52% and 0.92% of the limited partners ' rights respectively. But Yunfeng fund L.P. Any investment decisions are made by the Yunfeng Fund (general Partners), and the two are limited partners in the Yunfeng e-commerce fund.

The Giants ' board of directors had previously identified Mr. Jason as an independent director and had no substantive relationship with the company or the management of the company, in line with the requirements of the NYSE and the SEC for their independence as members of board committees.

Iv. non-binding Privatization offers

In an open letter to shareholders issued on June 7, 2013, the chief executive of the company, Mr. Shi Yuzhu, has considered the sale of some of its giants in the form of an existing shareholder offering for his personal long-term financial planning diversity. Mr. Shi Yuzhu sells shares to other buyers ' consortium members, and as part of an offer to privatize the Giants, it is in line with the needs of Mr. Shi Yuzhu to diversify his personal investment, and also made relevant announcements.

As previously announced, the giant board of Trustees has set up a special committee to assess the proposed privatization offer, and the Special Commission has appointed external legal and financial advisers. The Special Committee is actively negotiating the terms of the final contract with the buyer consortium. In addition, the giant was informed by the Buyer's consortium that the founder was actively conducting due diligence and arranging the necessary additional financing for the offer proposal. The Special Committee does not have a precise timetable for the completion of the proposal for the transaction or for any other transaction proposal, if any, unless a decision or agreement is reached to announce the relevant progress. There is no guarantee that any final offer will be formed or any final agreement to be signed on the transaction, or that the transaction or any other transaction will be approved.