X Financial chairman's holding company proposes US$6.03-per-ADS buyout to take the company private
SEC filings show Mangrove Coast Investment Limited, which holds 42.74% of X Financial, has made a non-binding offer for the shares it does not own.
Mangrove Coast Investment Limited, X Financial's largest shareholder, has proposed a non-binding going-private deal at US$6.03 per ADS, a 28.3% premium to the last close according to its letter.
- Offer
- US$6.03 per ADS (US$1.005 per share)
- Premium (per letter)
- 28.3% to last close; 25.1% to 30-day VWAP
- Mangrove Coast stake
- 42.74% of shares; c.93.45% of votes
- Filing
- Schedule 13D, 6 Nov 2026
Mangrove Coast Investment Limited, which holds 42.74% of the shares of Shenzhen-based X Financial (CIK 1725033), has proposed to buy the rest of the company at US$6.03 in cash per American depositary share, according to a Schedule 13D filed with the SEC on 6 November 2026.
The filing reports that Mangrove Coast, a British Virgin Islands company, holds 98,765,278 ordinary shares: 1,165,278 Class A shares and 97,600,000 Class B shares. It states that Mangrove Coast is wholly owned by the Mangrove Coast Trust, whose beneficiaries are X Financial's chairman and chief executive, Yue (Justin) Tang, and his family members. Mr Tang's own beneficial ownership is reported at 110,866,701 shares, or 47.97%. (Schedule 13D, 6 Nov 2026)
Class B shares carry twenty votes each and Class A shares one. The proposal letter puts Mangrove Coast's share of total voting power at about 93.45%. (Schedule 13D, Exhibit 99.2, 6 Nov 2026)
The preliminary, non-binding proposal, dated 6 November 2026 and sent to X Financial's board, offers US$6.03 per ADS, or US$1.005 per ordinary share. The letter describes this as a 28.3% premium to the last closing price and a 25.1% premium to the 30-day volume-weighted average price. (Schedule 13D, Item 4)
The filing states the deal would be funded with a mix of debt and equity: equity from Mangrove Coast and its affiliates in cash or rolled-over shares, and debt from third-party lenders. (Schedule 13D, Item 3)
If completed, the ADSs would be delisted from the New York Stock Exchange and become eligible for deregistration. The filing states that neither X Financial nor Mangrove Coast is obliged to complete the transaction, which depends on definitive agreements, and the letter says Mr Tang would recuse himself from board deliberations on it. (Schedule 13D, Item 4)
The filings do not state when definitive agreements might be reached or how the board will assess the proposal. Loro has made no approach to the company. Figures are as reported in Mangrove Coast Investment Limited's SEC filings.
Primary sources
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