Will the acquisition trigger any changes to the company’s capital structure, such as debt refinancing or share buybacks, that could affect liquidity?

Capital‑structure impact:

The Hillhouse proposal is a straight‑cash transaction (US $1.77 per ADS) and the announcement does not reference any financing package, debt refinancing, or share‑repurchase program. In most cash‑only take‑overs of a small‑cap consumer‑tech name like Smart Share (Nasdaq: EM), the acquirer either taps its own balance‑sheet or raises short‑term bridge financing that is repaid post‑closing. Because the deal is still “preliminary” and non‑binding, there is no disclosed intention to refinance existing EM debt or to launch a buy‑back of the remaining shares. Consequently, any immediate change to EM’s capital structure is unlikely – the company will simply cease to exist as a public entity after the merger, and the existing cash and debt balances will be absorbed by Hillhouse.

Liquidity & trading implications:

From a market‑microstructure view, the announcement alone has already compressed EM’s bid‑ask spread and lifted volume as investors price in the $1.77 cash premium. With no disclosed debt‑refinancing or buy‑back activity, the only liquidity risk stems from the “going‑private” mechanics: once the merger is consummated, EM’s shares will be delisted, eliminating public liquidity. Traders should therefore focus on the short‑term price trajectory toward the cash offer—monitoring any changes in the offer price, regulatory approvals, or a potential competing bid—rather than expecting a secondary wave of capital‑structure moves that could affect cash flow or share supply. A reasonable tactical play is to hold a long position if the current market price remains below the $1.77 level, with a tight stop just above the bid‑ask midpoint, and to unwind the position promptly if the deal stalls or an alternative structure (e.g., stock‑swap) is introduced.