NEW YORK, Aug. 16, 2013 (GLOBE NEWSWIRE) -- Snowy August Management LLC today announced that shareholders of Tongxin International Ltd. (OTC:TXIC) have requested a meeting of shareholders pursuant to Section 82 of the BVI Business Companies Act.
The requesting shareholders already represent over 30% of the total outstanding shares of Tongxin and additional interested shareholders are expected to be added to the request. BVI law requires the directors of Tongxin to call a meeting if requested to do so by the holders of at least 30% of the voting rights.
Shareholders have requested the meeting to consider and vote on proposals by Michael Onghai and PEEK Investments II LLC. Mr. Onghai is a principal of Snowy August and one of Tongxin's largest shareholders. PEEK is sponsored by a consortium of Tongxin's shareholders represented by Snowy August.
"We have a significant ownership stake in Tongxin and are committed to Tongxin's long-term success," stated Mr. Onghai. "Although the company needs to address reporting and governance matters, we believe that Tongxin has been unfairly lumped into a category with certain other Chinese companies. Based on the information available to us, we have no reason to believe that the issues of those companies are applicable to Tongxin.
We continue to believe that the stock is undervalued and represents an attractive investment opportunity. We do not believe the market price accurately reflects the true value of Tongxin's business and operations or, more specifically, even the company's real estate holdings and related assets as compared to its debt and liabilities.
As long-term investors, we value our relationship with Tongxin and have continued to support the company. We are excited about the prospect of working together with Tongxin's directors and management to maximize value for all shareholders.
The meeting is an important step in demonstrating to investors the Tongxin's expressed commitment to improved disclosure practices and greater transparency for shareholders. We plan to continue to engage in discussions and meet with the company and other shareholders and look forward to presenting our proposals at the meeting.
As one of Tongxin's largest shareholders, we are dedicated to assisting the company in resolving the reporting and governance matters and repairing and rebuilding the company's international investor relations. We are confident that, by working together, Tongxin's directors and managers and investors in both China and the U.S. can make the company a model of success and an example of how good leadership and international collaboration can create value for all stakeholders."
About Snowy August Management LLC
Snowy August Management LLC is an alternative investment manager headquartered in New York. Snowy August provides value-oriented investment management services, focusing on information technology and Southeast Asian businesses and investments. As of the date hereof, Snowy August may be deemed to beneficially own 1,064,624 (6.7%) of Tongxin's outstanding shares.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to factors that could cause actual results to differ materially from those in the forward-looking statements, including assumptions that may or may not be correct or accurate due to the inherent uncertainty of future events, risks related to LookSmart and the actions of third parties we cannot control or predict with certainty, and other factors that may cause us to change our plans.
About a Possible Proxy or Consent Solicitation
This press release is intended to inform the public or security holders in general that shareholders have requested a meeting. This press release is not a request for a proxy or consent or to execute or not execute or revoke a proxy or consent. This press release is not intended to result in the procurement, withholding, or revocation of a proxy or consent or otherwise intended to be a solicitation of proxies or consents from any security holder. We are not asking you for a proxy or consent and you are requested not to send us a proxy or consent. If any such solicitation is made, such solicitation would be made pursuant to solicitation materials filed with the SEC.