EX-99.C 4 d137899dex99c.htm EX-C EX-C

Exhibit C

August 4, 2021

Board of Directors (the “Board”)

LAIX Inc. (“LAIX” or the “Company”)

3/F, Building B, No. 1687 Changyang Road

Yangpu District, Shanghai 200090

People’s Republic of China

Dear Members of the Board of Directors:

Mr. Yi Wang, co-founder, chairman of the Board and chief executive officer of LAIX, Mr. Zheren Hu, co-founder, director and chief technology officer of LAIX, Mr. Hui Lin, co-founder, director and chief scientist of LAIX (collectively, the “Founders”), and PCIL IV Limited (together with its affiliated investment entities, “Primavera”, and together with the Founders, the “Buyer Group”, “we” or “us”) are pleased to submit this preliminary non-binding proposal (“Proposal”) to acquire all of the outstanding ordinary shares of the Company (the “Ordinary Shares”), including the Class A ordinary shares represented by the American Depositary Shares of the Company (the “ADSs”, each representing one Class A ordinary share) that are not already held by the Buyer Group (the “Acquisition”) in a going private transaction at a proposed purchase price of US$1.13 per Ordinary Share or ADS in cash. We believe that our Proposal provides a very attractive opportunity for the Company’s shareholders to realize substantial and immediate returns. Key terms of our Proposal include:

1.    Buyer Group. We have entered into a consortium agreement dated as of the date hereof, pursuant to which we will form an acquisition company for the purpose of implementing the Acquisition, and have agreed to work with each other exclusively in pursuing the Acquisition. The Acquisition will be in the form of a merger of the Company with our acquisition vehicle.

2.    Purchase Price. The consideration payable for each Ordinary Share or ADS is proposed to be US$1.13 in cash (in each case other than those Ordinary Shares and ADSs held by the members of the Buyer Group). Our proposed purchase price represents a premium of approximately 15% to the volume-weighted average price of the ADSs during the last 7 trading days.

3.    Funding. We intend to finance the Acquisition with equity capital from the Buyer Group in the form of rollover equity in the Company and cash contributions. We expect definitive commitments for the required financing, subject to terms and conditions set forth therein, to be in place when the Definitive Agreements (as defined below) are signed with the Company.

4.    Process; Due Diligence. We believe that the Acquisition will provide superior value to the Company’s shareholders. We recognize that the Company’s Board will evaluate the Acquisition fairly and independently before it can make its determination to endorse it. Parties providing financing will require a timely opportunity to conduct customary due diligence on the Company. We would like to ask the Board to accommodate such due diligence request and approve the provision of confidential information relating to the Company and its business to possible sources of financing subject to a customary form of confidentiality agreement.

5.    Definitive Agreements. We are prepared to promptly negotiate and finalize mutually satisfactory definitive agreements with respect to the Acquisition (the “Definitive Agreements”) while conducting our due diligence. This proposal is subject to the execution of the Definitive Agreements. The Definitive Agreements will provide for representations, warranties, covenants and conditions which are typical, customary and appropriate for transactions of this type.


6.    Confidentiality. The Founders will, as required by law, timely file a Schedule 13D to disclose this Proposal. We believe it would be in all of our interests to ensure that our discussions relating to the Acquisition proceed in a confidential manner, unless otherwise required by law, until we have executed the Definitive Agreements or terminated our discussions.

7.    About Primavera. Primavera Capital Group is a premier China-based global investment firm. The firm focuses on consumer and retail, technology, healthcare, education, and financial services. Its portfolio includes investments in industry leaders such as Alibaba, Ant Group, ByteDance, Junlebao, Kuaishou, Laobaixing, Xpeng, Yum China, among others.

8.    Business and Operations of the Company. The Founders collectively own approximately 39.8% of the issued and outstanding shares of the Company and approximately 86.7% of the Company’s voting power, and we remain committed to building and growing the Company after the Acquisition. In considering our Proposal, you should be aware that we are interested only in acquiring the outstanding shares of the Company that we do not already own, and that we do not intend to sell our shares in the Company to any third party.

9.    No Binding Commitment. This letter does not contain all matters upon which agreement must be reached in order to consummate the proposed Acquisition described above, constitutes only a preliminary indication of our interest, and does not constitute any binding commitment with respect to the Acquisition. A binding commitment will result only from the execution of Definitive Agreements, and then will be on terms and conditions provided in such documentation. Nothing herein shall obligate any person to engage in or continue discussions regarding the proposed Acquisition, and any of us may terminate discussions at any time for any reason or no reason. Any actions taken by any person in reliance on this Proposal shall be at that person’s own risk and cost.

In closing, we would like to express our commitment to working together to bring this Acquisition to a successful and timely conclusion. We look forward to hearing from you.

*    *    *    *


Sincerely,
Yi Wang

/s/ Yi Wang

[Proposal Letter Signature Page]


Sincerely,
Zheren Hu

/s/ Zheren Hu

[Proposal Letter Signature Page]


Sincerely,
Hui Lin

/s/ Hui Lin

[Proposal Letter Signature Page]


Sincerely,
PCIL IV Limited
By:  

/s/ Ena Leung

Name: Ena Leung
Title: Director

[Proposal Letter Signature Page]