0001144204-16-082919.txt : 20160217 0001144204-16-082919.hdr.sgml : 20160217 20160217072225 ACCESSION NUMBER: 0001144204-16-082919 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20160217 DATE AS OF CHANGE: 20160217 GROUP MEMBERS: CHI SING HO GROUP MEMBERS: IDG-ACCEL CHINA GROWTH FUND GP II ASSOCIATES LTD. GROUP MEMBERS: IDG-ACCEL CHINA GROWTH FUND II ASSOCIATES L.P. GROUP MEMBERS: IDG-ACCEL CHINA INVESTORS II L.P. GROUP MEMBERS: QUAN ZHOU SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: KONGZHONG CORP CENTRAL INDEX KEY: 0001285137 STANDARD INDUSTRIAL CLASSIFICATION: TELEGRAPH & OTHER MESSAGE COMMUNICATIONS [4822] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-80458 FILM NUMBER: 161431593 BUSINESS ADDRESS: STREET 1: 35F, TENGDA TOWER, STREET 2: NO. 168 XIWAI ST. CITY: HAIDIAN DISTRICT, BEIJING STATE: F4 ZIP: 100044 BUSINESS PHONE: (8610) 8857-5892 MAIL ADDRESS: STREET 1: 35F, TENGDA TOWER, STREET 2: NO. 168 XIWAI ST. CITY: HAIDIAN DISTRICT, BEIJING STATE: F4 ZIP: 100044 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: IDG-ACCEL CHINA GROWTH FUND II L P CENTRAL INDEX KEY: 0001407108 IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ROOM 616, TOWER A, COFCO PLAZA STREET 2: 8 JIANGUOMENNEI AVENUE CITY: BEIJING STATE: F4 ZIP: 100005 BUSINESS PHONE: (852) 2529 1016 MAIL ADDRESS: STREET 1: C/O IDG VC MANAGEMENT LTD. STREET 2: UNIT 5505, THE CENTRE, 99 QUEEN'S RD CITY: CENTRAL STATE: k3 ZIP: 00000 SC 13D/A 1 v431943_sc13da.htm SCHEDULE 13D/A

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13D/A

UNDER SECURITIES EXCHANGE ACT OF 1934

(Amendment No. 1)*

 

KongZhong Corporation

(Name of Issuer)

 

Ordinary Shares, par value US$0.0000005 per share**

(Title of Class of Securities)

 

50047P104***

(CUSIP Number)

 

IDG-Accel China Growth Fund II L.P.

c/o IDG VC Management Ltd.

Unit 5505, The Center

99 Queen’s Road

Central, Hong Kong

+86 10 6526 2400

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

 

February 17, 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 Rule 13d-1 (e), 13d-1(f) or 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 Rule §240.13d-7(b) for other parties to whom copies are to be sent.

 

*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

**Not for trading, but only in connection with the registration of American Depositary Shares each representing 40 ordinary shares.

 

***This CUSIP applies to the American Depositary Shares, each representing 40 ordinary 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 “Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 
 

CUSIP No. 50047P104 13D Page 2 of 13 Pages

 

1

NAME OF REPORTING PERSONS

IDG-Accel China Growth Fund II L.P.

 

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) ¨

(b) ¨

3

SEC USE ONLY

 

4

SOURCE OF FUNDS

OO

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED

PURSUANT TO ITEM 2(d) or 2(e)

 

 

¨

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF SHARES

BENEFICIALLY OWNED BY

EACH REPORTING PERSON

WITH

7

SOLE VOTING POWER

 

92,818,000(1)

8

SHARED VOTING POWER

 

7,591,160(2)

9

SOLE DISPOSITIVE POWER

 

92,818,000(1)

10

SHARED DISPOSITIVE POWER

 

7,591,160(2)

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

100,409,160

12

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

 

 

¨

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.3%(3)

14

TYPE OF REPORTING PERSON

PN

 

 

 

(1) By virtue of being the general partner of the Reporting Person and the persons controlling such general partner, IDG-Accel China Growth Fund II Associates L.P., IDG-Accel China Growth Fund GP II Associates Ltd., Chi Sing Ho and Quan Zhou acting together may also be deemed to have sole voting and dispositive power with respect to these Shares.

 

(2) IDG-Accel China Investors II L.P. is the record owner of these Shares. The Reporting Person and IDG-Accel China Investors II L.P. have the same ultimate general partner, IDG-Accel China Growth Fund GP II Associates Ltd. By virtue of this, the Reporting Person may be deemed to be under common control with IDG-Accel China Investors II L.P. and thus share voting and dispositive power with respect to these Shares.

 

(3) Based upon 1,882,073,063 Shares outstanding as of December 31, 2014 as reported in the Issuer’s annual report on Form 20-F for the fiscal year ended December 31, 2014 filed on April 16, 2015. 

 
 

CUSIP No. 50047P104 13D Page 3 of 13 pages

 

1

NAME OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

 

IDG-Accel China Growth Fund II Associates L.P.

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) ¨

(b) ¨

3

SEC USE ONLY

 

 

4

SOURCE OF FUNDS

OO

 

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED

PURSUANT TO ITEM 2(d) or 2(e)

 

 

¨

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF SHARES

BENEFICIALLY OWNED BY

EACH REPORTING PERSON

WITH

7

SOLE VOTING POWER

 

92,818,000(1)

8

SHARED VOTING POWER

 

7,591,160(2)

9

SOLE DISPOSITIVE POWER

 

92,818,000(1)

10

SHARED DISPOSITIVE POWER

 

7,591,160(2)

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

100,409,160

12

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

 

 

¨

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.3%(3)

14

TYPE OF REPORTING PERSON

PN

  

 

 

(1) By virtue of being the general partner of the Reporting Person and the persons controlling such general partner, IDG-Accel China Growth Fund GP II Associates Ltd., Chi Sing Ho and Quan Zhou acting together may also be deemed to have sole voting and dispositive power with respect to these Shares.

 

(2) IDG-Accel China Investors II L.P. is the record owner of these Shares. The Reporting Person and IDG-Accel China Investors II L.P. have the same ultimate general partner, IDG-Accel China Growth Fund GP II Associates Ltd. By virtue of this, the Reporting Person may be deemed to be under common control with IDG-Accel China Investors II L.P. and thus share voting and dispositive power with respect to these Shares.

 

(3) Based upon 1,882,073,063 Shares outstanding as of December 31, 2014 as reported in the Issuer’s annual report on Form 20-F for the fiscal year ended December 31, 2014 filed on April 16, 2015.

  

 

 
 

CUSIP No. 50047P104 13D Page 4 of 13 pages

 

1

NAME OF REPORTING PERSONS

 

IDG-Accel China Growth Fund GP II Associates Ltd.

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) ¨

(b) ¨ 

3

SEC USE ONLY

 

 

4

SOURCE OF FUNDS

OO

 

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED

PURSUANT TO ITEM 2(d) or 2(e)

 

¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF SHARES

BENEFICIALLY OWNED BY

EACH REPORTING PERSON

WITH

7

SOLE VOTING POWER

 

100,409,160(1)

8

SHARED VOTING POWER

 

0

9

SOLE DISPOSITIVE POWER

 

100,409,160(1)

10

SHARED DISPOSITIVE POWER

 

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

100,409,160

12

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

 

 

¨

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.3%(2)

14

TYPE OF REPORTING PERSON

CO

 

 

 

(1) Including 92,818,000 Shares of which the record owner is IDG-Accel China Growth Fund II L.P. and 7,591,160 Shares of which the record owner is IDG-Accel China Investors II L.P. By virtue of being the ultimate general partner of both record owners, the Reporting Person may be deemed to have sole voting and dispositive power with respect to all these Shares.

 

(2) Based upon 1,882,073,063 Shares outstanding as of December 31, 2014 as reported in the Issuer’s annual report on Form 20-F for the fiscal year ended December 31, 2014 filed on April 16, 2015.

  

 

 
 

CUSIP No. 50047P104 13D Page 5 of 13 pages

 

1

NAME OF REPORTING PERSONS

 

IDG-Accel China Investors II L.P.

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) ¨

(b) ¨

3

SEC USE ONLY

 

 

4

SOURCE OF FUNDS

OO

 

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED

PURSUANT TO ITEM 2(d) or 2(e)

 

 

¨

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF SHARES

BENEFICIALLY OWNED BY

EACH REPORTING PERSON

WITH

7

SOLE VOTING POWER

 

7,591,160(1)

8

SHARED VOTING POWER

 

92,818,000(2)

9

SOLE DISPOSITIVE POWER

 

7,591,160(1)

10

SHARED DISPOSITIVE POWER

 

92,818,000(2)

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

100,409,160

12

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

 

 

¨

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.3%(3)

14

TYPE OF REPORTING PERSON

PN

  

 

 

(1) By virtue of being the general partner of the Reporting Person and the persons controlling such general partner, IDG-Accel China Growth Fund GP II Associates Ltd., Chi Sing Ho and Quan Zhou acting together may also be deemed to have sole voting and dispositive power with respect to these Shares.

  

(2) IDG-Accel China Growth Fund II L.P. is the record owner of these Shares. IDG-Accel China Growth Fund II L.P. and the Reporting Person have the same ultimate general partner, IDG-Accel China Growth Fund GP II Associates Ltd. By virtue of this, the Reporting Person may be deemed to be under common control with IDG-Accel China Growth Fund II L.P. and thus share voting and dispositive power with respect to these Shares.

  

(3) Based upon 1,882,073,063 Shares outstanding as of December 31, 2014 as reported in the Issuer’s annual report on Form 20-F for the fiscal year ended December 31, 2014 filed on April 16, 2015.

 
 

CUSIP No. 50047P104 13D Page 6 of 13 pages

 

1

NAME OF REPORTING PERSONS

 

Chi Sing Ho

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) o 

(b) o 

3

SEC USE ONLY

 

 

4

SOURCE OF FUNDS

OO

 

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED

PURSUANT TO ITEM 2(d) or 2(e)

 

 

¨

6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Canada

NUMBER OF SHARES

BENEFICIALLY OWNED BY

EACH REPORTING PERSON

WITH

7

SOLE VOTING POWER

 

0

8

SHARED VOTING POWER

 

100,409,160(1)

9

SOLE DISPOSITIVE POWER

 

0

10

SHARED DISPOSITIVE POWER

 

100,409,160(1)

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

100,409,160

12

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

 

 

¨

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.3%(2)

14

TYPE OF REPORTING PERSON

IN

 

 

 

(1) Including 92,818,000 Shares of which the record owner is IDG-Accel China Growth Fund II L.P. and 7,591,160 Shares of which the record owner is IDG-Accel China Investors II L.P. The ultimate general partner of both record owners is IDG-Accel China Growth Fund GP II Associates Ltd., of which the Reporting Person and Quan Zhou are directors. By virtue of acting together to direct the management and operations of IDG-Accel China Growth Fund GP II Associates Ltd., the Reporting Person and Quan Zhou may be deemed to have shared voting and dispositive power with respect to all these Shares.

 

(2) Based upon 1,882,073,063 Shares outstanding as of December 31, 2014 as reported in the Issuer’s annual report on Form 20-F for the fiscal year ended December 31, 2014 filed on April 16, 2015.

 
 

CUSIP No. 50047P104 13D Page 7 of 13 pages

 

1

NAME OF REPORTING PERSONS

 

Quan Zhou

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) ¨ 

(b) ¨

3

SEC USE ONLY

 

 

4

SOURCE OF FUNDS

OO

 

5

CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED

PURSUANT TO ITEM 2(d) or 2(e)

 

¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States of America

NUMBER OF SHARES
BENEFICIALLY OWNED BY
EACH REPORTING PERSON
WITH
7

SOLE VOTING POWER

 

0

8

SHARED VOTING POWER

 

100,409,160(1)

9

SOLE DISPOSITIVE POWER

 

0

10

SHARED DISPOSITIVE POWER

 

100,409,160(1)

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

100,409,160

12

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

 

 

¨

13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.3%(2)

14

TYPE OF REPORTING PERSON

IN

 

 

 

(1) Including 92,818,000 Shares of which the record owner is IDG-Accel China Growth Fund II L.P. and 7,591,160 Shares of which the record owner is IDG-Accel China Investors II L.P. The ultimate general partner of both record owners is IDG-Accel China Growth Fund GP II Associates Ltd., of which the Reporting Person and Chi Sing Ho are directors. By virtue of acting together to direct the management and operations of IDG-Accel China Growth Fund GP II Associates Ltd., the Reporting Person and Chi Sing Ho may be deemed to have shared voting and dispositive power with respect to all these Shares.

 

(2) Based upon 1,882,073,063 Shares outstanding as of December 31, 2014 as reported in the Issuer’s annual report on Form 20-F for the fiscal year ended December 31, 2014 filed on April 16, 2015.

 
 

 

Introductory Note

 

This Amendment No.1 to Schedule 13D (the “Amendment No. 1”) amends and supplements the Schedule 13D filed by the Reporting Persons with the SEC on February 5, 2016 (the “Original Schedule 13D”). Except as amended and supplemented herein, the information set forth in the Original Schedule 13D remains unchanged. Capitalized terms used herein have meanings as assigned thereto in the Original Schedule 13D unless defined herein.

 

  

Item 4. Purpose of Transaction.

 

Item 4 of the Original Schedule 13D is hereby amended and restated in its entirety as follows:

 

On February 5, 2016, IDG Growth II and IDG Investors II entered into a consortium agreement (the “Consortium Agreement”) with Leilei Wang, the chairman and chief executive officer of the Issuer, Right Advance Management Ltd and Chiming Bells International Limited (collectively, the “Chairman Parties”, and together with IDG Growth II and IDG Investors II, the “Consortium”), pursuant to which the Consortium will cooperate in good faith in connection with an acquisition transaction (the “Transaction”) with respect to the Issuer. The Consortium Agreement provides, among other things, for: cooperation in arranging financing; engaging advisors; admission of new Consortium members; cooperation in obtaining applicable governmental, statutory, regulatory or other approvals, licenses, waivers or exemptions for the consummation of the transactions; and cooperation in preparing definitive documentation with respect to the Transaction. During the period beginning on the date of the Consortium Agreement and ending on the earlier of (i) the 12-month anniversary of the date of the Consortium Agreement and (ii) the termination of the Consortium Agreement on the occurrence of other termination events, members of the Consortium have agreed to work exclusively with each other with respect to the Transaction and not to (a) make a competing proposal for the acquisition of control of the Issuer or (b) acquire or dispose of any securities of the Issuer.

 

On February 17, 2016, 上海宏流资产管理中心(有限合伙)(Shanghai Trend Asset Management Center (Limited Partnership)) (“Shanghai Trend”), a PRC limited partnership, signed an adherence agreement to the Consortium Agreement (the “Shanghai Trend Adherence Agreement”), pursuant to which Shanghai Trend joined the Consortium. References to the “Consortium” or “Consortium Members” after February 17, 2016 shall include Shanghai Trend. 

 

IDG Growth II and Leilei Wang have previously submitted a preliminary non-binding proposal (the “Proposal”) to the Issuer’s board of directors in connection with the Transaction. Under the Proposal, members of the Consortium proposed to acquire, through an acquisition vehicle to be formed by them, all of the outstanding ordinary shares of the Company and ADSs not owned by them for US$8.56 per ADS or US$0.2140 per ordinary share in cash, representing a premium of 21.8% to the closing price of the Issuer’s ADSs on June 26, 2015 and a premium of approximately 20% to the average closing price of the Issuer’s ADSs during the last 30 trading days. The Proposal also provides that, among other things, the Consortium will negotiate and execute definitive agreements with respect to the Transaction that will include provisions typical for transactions of this type.

 

If the Transaction is completed, the Issuer’s ADSs would be delisted from the NASDAQ Global Select Market, and the Issuer’s obligation to file periodic reports under the Act would terminate. In addition, consummation of the Transaction could result in one or more of the actions specified in clauses (a)-(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 board of directors of the Issuer (as the surviving company in 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.

 

 
 

 

Other than as described above, none of the Reporting Persons currently has any plans or proposals that relate to, or would result in, any of the matters listed in Items 4(a)–(j) of Schedule 13D, although the Reporting Persons may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto. As a result of these activities, one or more of the Reporting Persons may suggest or take a position with respect to potential changes in the operations, management, or capital structure of the Issuer as a means of enhancing shareholder value. Such suggestions or positions may include one or more plans or proposals that relate to or would result in any of the actions required to be reported herein, including, without limitation, such matters as acquiring additional securities of the Issuer or disposing of securities of the Issuer; entering into an extraordinary corporate transaction such as a merger, reorganization or liquidation, involving the Issuer or any of its subsidiaries; selling or transferring a material amount of assets of the Issuer or any of its subsidiaries; changing the present board of directors or management of the Issuer, including changing the number or term of directors or filling any existing vacancies on the board of directors; materially changing the present capitalization or dividend policy of the Issuer; materially changing the Issuer’s business or corporate structure; changing the Issuer’s certificate of incorporation, bylaws or instruments corresponding thereto or taking other actions which may impede the acquisition of control of the Issuer by any person; causing a class of securities of the Issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association; causing a class of equity securities of the Issuer to become eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Act; and taking any action similar to any of those enumerated above.

 

 
 

 

References to the Consortium Agreement and the Shanghai Trend Adherence Agreement in this statement are qualified in their entirety by reference to the Consortium Agreement and the Shanghai Trend Adherence Agreement, copies of which are attached hereto as Exhibits 2 and 3 and incorporated herein by reference in their entirety.

  

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

 

Item 6 of the Original Schedule 13D is hereby amended and restated in its entirety as follows:

 

The Consortium Agreement and the Shanghai Trend Adherence Agreement, which have been filed as Exhibit 2 and Exhibit 3 to this statement, are incorporated herein by reference in their entirety. In addition, the information set forth in Items 3, 4 and 5 of this statement is incorporated by reference in its entirety into this Item 6. To the best knowledge of the Reporting Persons, except as provided herein, there are no other contracts, arrangements, understandings or relationships (legal or otherwise) among the Reporting Persons and between any of the Reporting Persons and any other person with respect to any securities of the Issuer, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or loss, or the giving or withholding of proxies, or a pledge or contingency, the occurrence of which would give another person voting power over the securities of the Issuer.

 

 
 

 

Item 7. Material to be Filed as Exhibits.

 

Exhibit 1(1): Joint Filing Agreement, among each Reporting Person, dated February 5, 2016 by and among the Reporting Persons.

 

Exhibit 2(1): Consortium Agreement, dated February 5, 2016 by and among Leilei Wang, Right Advance Management Ltd., Chiming Bells International Limited., IDG-Accel China Growth Fund II L.P., and IDG-Accel China Investors II L.P.

 

Exhibit 3: Adherence Agreement dated February 17, 2016 by and among Shanghai Trend, Leilei Wang, Right Advance Management Ltd., Chiming Bells International Limited., IDG-Accel China Growth Fund II L.P., and IDG-Accel China Investors II L.P.

 

___________

 

(1) Filed previously.

 

* * * * * 

 
 

 

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.

 

Date: February 17, 2016

  

  IDG-ACCEL CHINA GROWTH FUND II L.P.
   
  By: /s/ Quan Zhou
    Name: Quan Zhou
    Title: Authorised Signatory
     
  IDG-ACCEL CHINA GROWTH FUND II
ASSOCIATES L.P.
   
  By: /s/ Quan Zhou
    Name: Quan Zhou
    Title: Authorised Signatory
     
  IDG-ACCEL CHINA INVESTORS II L.P.
   
  By: /s/ Quan Zhou
    Name: Quan Zhou
    Title: Authorised Signatory
   
  IDG-ACCEL CHINA GROWTH FUND GP II
ASSOCIATES LTD.
   
  By: /s/ Quan Zhou
    Name: Quan Zhou
    Title: Authorised Signatory
   
  CHI SING HO
   
  By: /s/ Chi Sing Ho
    Name: Chi Sing Ho
   
QUAN ZHOU
   
  By: /s/ Quan Zhou
    Name: Quan Zhou

 

 
 

 

INDEX TO EXHIBITS

 

Exhibit 1(1)  

Joint Filing Agreement by IDG-Accel China Growth Fund II L.P.,

IDG-Accel China Investors II L.P., IDG-Accel China Growth Fund II Associates L.P., IDG-Accel China Growth Fund GP II Associates Ltd, Chi Sing Ho and Quan Zhou.

   
Exhibit 2(1)   Consortium Agreement, dated February 5, 2016 by and among Leilei Wang, Right Advance Management Ltd., Chiming Bells International Limited., IDG-Accel China Growth Fund II L.P., and IDG-Accel China Investors II L.P.
     
Exhibit 3   Adherence Agreement dated February 17, 2016 by and among Shanghai Trend, Leilei Wang, Right Advance Management Ltd., Chiming Bells International Limited., IDG-Accel China Growth Fund II L.P., and IDG-Accel China Investors II L.P.

 

 _________

 

(1) Filed previously.

 

 

EX-99.3 2 v431943_ex3.htm EXHIBIT 3

Exhibit 3

 

FORM OF ADHERENCE AGREEMENT

 

THIS ADHERENCE AGREEMENT (this “Agreement”) is entered into on February 17, 2016

 

BY:

 

上海宏流资产管理中心(有限合伙)(Shanghai Trend Asset Management Center (Limited Partnership)), a PRC limited partnership with its registered address at Unit 1-110, Zone B, 5th Floor, 163 Songxing Road, Baoshan District, Shanghai, China (the “New Sponsor”).

 

RECITALS:

 

(A) On February 5, Leilei Wang, Right Advance Management Ltd., Chiming Bells International Limited., IDG-Accel China Growth Fund II L.P. and IDG-Accel China Investors II L.P. (the “Existing Parties”) entered into a consortium agreement (the “Consortium Agreement”) and proposed to undertake an acquisition transaction (the “Transaction”) with respect to KongZhong Corporation (the “Target”), a company incorporated under the laws of the Cayman Islands and listed on the Nasdaq Stock Market (“NASDAQ”), pursuant to which the Target would be delisted from NASDAQ and deregistered under the United States Securities Exchange Act of 1934, as amended.

 

(B) Additional sponsors may be admitted to the Consortium pursuant to Section 1.4(d) of the Consortium Agreement.

 

(C) The New Sponsor now wishes to participate in the Transaction contemplated under the Consortium Agreement, to sign this Agreement, and to be bound by the terms of the Consortium Agreement as a Sponsor and a Party thereto.

 

THIS AGREEMENT WITNESSES as follows:

 

1.DEFINED TERMS AND CONSTRUCTION

 

1.1Capitalized terms used but not defined herein shall have the meaning set forth in the Consortium Agreement.

 

1.2This Agreement shall be incorporated into the Consortium Agreement as if expressly incorporated into the Consortium Agreement.

 

2.UNDERTAKINGS

 

2.1Assumption of obligations

 

The New Sponsor undertakes, to each other party to this Agreement that it will, with effect from the date hereof, perform and comply with each of the obligations of a Sponsor as if it had been a Party to the Consortium Agreement at the date of execution thereof and the Existing Parties agree that where there is a reference to a “Sponsor” or “Party” there it shall be deemed to include a reference to the New Sponsor and with effect from the date hereof, all the rights of a Sponsor provided under the Consortium Agreement will be accorded to the New Sponsor as if the New Sponsor had been a Sponsor and a Party under the Consortium Agreement at the date of execution thereof.

 

 1 
 

 

3.REPRESENTATIONS AND WARRANTIES

 

3.1The New Sponsor represents and warrants to each of the other Parties as follows:

 

3.1.1Status

 

It is a limited partnership duly organized, established and validly existing under the laws of the jurisdiction stated in preamble 1 of this Agreement and has all requisite power and authority to own, lease and operate its assets and to conduct the business which it conducts.

 

3.1.2Due Authorization

 

It has full power and authority to execute and deliver this Agreement and the execution, delivery and performance of this Agreement by the New Sponsor has been duly authorized by all necessary action on behalf of the New Sponsor.

 

3.1.3Legal, Valid and Binding Obligation

 

This Agreement has been duly executed and delivered by the New Sponsor and constitutes the legal, valid and binding obligation of the New Sponsor, enforceable against it in accordance with the terms hereof.

 

3.1.4Reliance

 

Each Party acknowledges that the other Parties have entered into this Agreement on the basis of and reliance upon (among other things) the representations and warranties in Sections 3.1.1 to 3.1.4 and have been induced by them to enter into this Agreement.

 

4.ASSIGNMENT

 

The Parties agree that, notwithstanding anything to the contrary in this Agreement and the Consortium Agreement, the New Sponsor may, subject to the consent of the Chairman and IDG, assign its rights and obligations under this Agreement and the Consortium Agreement to any third party.

 

5.NOTICE.

 

Any notice, request, instruction or other document to be provided hereunder by any Party to another Party shall be in writing and delivered personally or sent by facsimile, overnight courier or electronic mail, to the address, facsimile number or electronic mail address provided under the other Party’s signature page to the Consortium Agreement, or to any other address, facsimile number or electronic mail address as a Party may hereafter specify for the purpose by notice to the other Parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 6:00 p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding Business Day in the place of receipt.

 

 2 
 

 

6.GOVERNING LAW.

 

This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the laws of any jurisdiction other than the State of New York.

 

7.DISPUTE RESOLUTION.

 

Section 9.9 of the Consortium Agreement shall be incorporated by reference herein and deemed to be a part hereof.

 

8.SPECIFIC PERFORMANCE.

 

Each Party acknowledges and agrees that the other Parties would be irreparably injured by a breach of this Agreement by it and that money damages alone are an inadequate remedy for actual or threatened breach of this Agreement. Accordingly, each Party shall be entitled to specific performance or injunctive or other equitable relief (without posting a bond or other security) to enforce or prevent any violations of any provision of this Agreement, in addition to all other rights and remedies available at law or in equity to such Party, including the right to claim money damages for breach of any provision of this Agreement.

 

[Signature page follows.]

 3 
 

 

IN WITNESS WHEREOF, the New Sponsor has caused this Agreement to be duly executed by its respective authorized officers as of the day and year first above written.

 

  上海宏流资产管理中心(有限合伙)(SHANGHAI TREND ASSET MANAGEMENT CENTER (LIMITED PARTNERSHIP))
      
  By:  /s/ Hu Shiqiong
  Name:   Hu Shiqiong
  Position:   Executive Partner
      
      
      
  Notice details
  Address: Unit 1601, Plaza A, RongChao Center, 6003 of Yitian Road, Futian District, Shenzhen, China
  Email: liwen@hongliufund.com
  Facsimile: 0755-82543192

 

[Adherence Agreement]

 

 

  LEILEI WANG
       
       
  /s/ Leilei WANG
       
  RIGHT ADVANCE MANAGEMENT LTD.
       
       
  By:   /s/ Leilei WANG
      Name: Leilei WANG
      Title: Authorised Signatory
       
       
  CHIMING BELLS INTERNATIONAL LIMITED
       
       
  By:   /s/ Leilei WANG
      Name: Leilei WANG
      Title: Authorised Signatory

 

[Adherence Agreement]

 

 

  IDG-ACCEL CHINA GROWTH FUND II L.P.
  By: IDG-Accel China Growth Fund II Associates L.P., its General Partner
  By: IDG-Accel China Growth Fund GP II Associates Ltd., its General Partner
      
      
  By:  /s/ Quan Zhou
     Name: Quan Zhou
     Title: Authorised Signatory
      
      
      
  IDG-ACCEL CHINA INVESTORS II L.P.
  By: IDG-Accel China Growth Fund GP II Associates Ltd., its General Partner
      
      
  By:  /s/ Quan Zhou
     Name: Quan Zhou
     Title: Authorised Signatory

 

[Adherence Agreement]