Qihoo 360 set to return to China's A-share market

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China's internet security giant Qihoo 360 Technology Co Ltd, which delisted from the New York Stock Exchange last year, is said to be close to joining the Shanghai exchange.

The company will carry out what's called a back-door listing via SJEC Corporation, an elevator and escalator maker that was suspended from trading in June, though regulators have asked for more information.

According to an announcement by SJEC, the A-share listed company will launch a reverse takeover to acquire 100 percent share of Qihoo 360 valued at 50.42 billion yuan (7.62 billion US dollars) by a series of deals including large asset swap and share issues.

After completing the back-door listing, Zhou Hongyi, Qihoo 360's chairman and CEO, will hold 12.14 percent share of the company. And by controlling other two companies that will hold 51.56 percent share of SJEC, he will become the company's actual controller.

Qihoo 360 was listed in the United States in 2011 until its privatization last year by a consortium led by chief executive and founder Zhou Hongyi. /Reuters Photo

Qihoo 360 said its net profit will not be lower than 2.2 billion yuan, 2.9 billion yuan and 3.8 billion yuan, respectively, in the years from 2017 to 2019, according to the announcement.

Qihoo 360 was listed in the United States in 2011 until its privatization last year by a consortium led by its chief executive and founder, Zhou Hongyi, for about 9.3 billion US dollars.

Chinese regulators are, however, questioning the anti-virus software maker’s disclosures.

The Shanghai Stock Exchange sent a letter of inquiry to SJEC Corp requesting more information about the software maker’s business model, financial details and restructuring history, SJEC said in a statement on Saturday, according to a Reuters report.

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Source(s): Reuters ,China Daily