Chinese meat and food processor Zhongpin Inc. (NASDAQ: HOGS) announced today that the company’s chairman, Xainfu Zhu, has submitted an offer to acquire all the outstanding shares he doesn’t already own for $13.50/share in cash, and to take the company private. Zhu currently owns about 17.5% of Zhongpin.
The proposal is preliminary and non-binding, and the company will form a special committee to consider Zhu’s offer. The company posted disappointing results for the fourth quarter. Even though revenues grew by 42%, operating profit fell by about 23%.
The stock opened this morning at $10.09 and was halted shortly after 11:00 a.m. ET at $11.74. Shares are up nearly 29% in a 52-week range of $6.60-$17.31.
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