Regarding the Acquisition of StayNTouch, Inc. by Beijing Shiji Information Technology Co., Ltd.
Record date: 2020-03-10
Order of March 6, 2020 Regarding the Acquisition of StayNTouch, Inc. by Beijing Shiji Information Technology Co., Ltd. By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 721 of the Defense Production Act of 1950, as amended (section 721), 50 U.S.C. 4565 , it is hereby ordered as follows: Section 1 . Findings. (a) There is credible evidence that leads me to believe that (1) Beijing Shiji Information Technology Co., Ltd., a public company organized under the
What this record contains
- Federal Register document
- 2020-05011
- Publication date
- 2020-03-10
- Citation
- 85 FR 13719
- Issuing office
- Executive Office of the President
Official record excerpt
Order of March 6, 2020 Regarding the Acquisition of StayNTouch, Inc. by Beijing Shiji Information Technology Co., Ltd. By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 721 of the Defense Production Act of 1950, as amended (section 721), 50 U.S.C. 4565 , it is hereby ordered as follows: Section 1 . Findings. (a) There is credible evidence that leads me to believe that (1) Beijing Shiji Information Technology Co., Ltd., a public company organized under the laws of China, and (2) its wholly owned direct subsidiary Shiji (Hong Kong) Ltd., a Hong Kong limited company (together, the “Purchaser”), through acquiring an interest in StayNTouch, Inc. (“StayNTouch”), a Delaware corporation, might take action that threatens to impair the national security of the United States; and (b) Provisions of law, other than section 721 and the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ), do not, in my judgment, provide adequate and appropriate authority for me to protect the national security in this matter. Sec. 2 . Actions Ordered and Authorized. On the basis of the findings set forth in section 1 of this order, considering the factors described in subsection 721(f) of the Defense Production Act of 1950, as appropriate, and pursuant to my authority under applicable law, including section 721, I hereby order that: (a) The transaction resulting in the acquisition of StayNTouch by the Purchaser is hereby prohibited, and ownership by the Purchaser of any interest in StayNTouch and its assets, whether effected directly or indirectly through the Purchaser, or through the Purchaser's shareholders, partners, subsidiaries, or affiliates, is also prohibited. (b) In order to effectuate this order, not later than 120 days after the date of this order, unless such date is extended for a period not to exceed 90 days, on such written conditions as the Committee on Foreign Investment in the United States (CFIUS) may impose, the Purchaser shall divest all interests in: (i) StayNTouch; (ii) StayNTouch's assets, intellectual property, technology, data (including customer data managed and stored by StayNTouch), personnel, and customer contracts; and (iii) any operations developed, held, or controlled, whether directly or indirectly, by StayNTouch at the time of, or since, its acquisition. Immediately upon divestment, the Purchaser shall certify in writing to CFIUS that such divestment has been effected in accordance with this order and that all steps necessary to fully and permanently abandon the transaction resulting in the acquisition of StayNTouch have been completed. (c) Immediately from the date of this order until such time as the divestment has been completed and verified to the satisfaction of CFIUS, the Purchaser shall refrain from accessing, and shall ensure that any of its subsidiaries or affiliates refrain from accessing, hotel guest data through StayNTouch. Not later than 7 days after the date of this order, the Purchaser shall ensure that controls are in place to prevent any such data access ( printed page 13720) until such time as the divestment has been completed and verified to the satisfaction of CFIUS. (d) The Purchaser shall not complete a sale or transfer under subsection 2(b) of this section to any third party: (i) until the Purchaser notifies CFIUS in writing of the intended recipient or buyer; and (ii) unless 10 business days have passed from the notification in subsection (d)(i) of this section and CFIUS has not issued an objection to the Purchaser. Among the factors CFIUS may consider in reviewing the proposed sale or transfer are whether the buyer or transferee: is a United States citizen or is owned by United States citizens; has or has had a direct or indirect contractual, financial, familial, employment, or other close and continuous relationship with the Purchaser, or its officers, employees, or shareholders; and can demonstrate a willingness and ability to support compliance with this order. In addition, CFIUS may consider whether the proposed sale or transfer would threaten to impair the national security of the United States or undermine the purposes of this order. (e) From the date of this order until the Purchaser provides a certification of divestment to CFIUS pursuant to subsection (b) of this section,
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