Yongye International receives offer to go private
NEW YORK (AP) — Chinese plant and animal feed maker Yongye International said Monday that a group including its CEO is offering to take the company private.
The company says that the offer from Chairman and CEO Zishen Wu, Full Alliance International Ltd., MSPEA Agriculture Holding Ltd. and Abax Global Capital Ltd. is to buy all of the shares of Yongye that they don't already own for $6.60 apiece. That's a 38 percent premium to the company's Friday closing price of $4.79.
Yongye International Inc. has about 56.6 million outstanding shares, according to FactSet.
Yongye shares jumped 85 cents, or 17.8 percent, to $5.64 in morning trading. The shares have traded in a 52-week range of $2.60 to $5.90.
The group says in its proposal letter that it plans to finance the deal with debt and equity capital.
Yongye's board has created a special committee to evaluate the offer and other possible transactions.