Crop-nutrient maker Yongye International Inc. (NASDAQ: YONG) has announced that a consortium led by the company’s chairman and CEO has made a preliminary, nonbinding offer of $6.60 a share in cash to take the company private. The acquiring group will finance the acquisition through a combination of debt and equity capital.
The proposed price represents a premium of about 37.8% to the Yongye’s closing price of $4.79 on Friday, October 12, a premium of more than 47% to the 30-day volume-weighted average price, and an 84.4% premium to the stock’s volume-weighted average price over the past six months.
Others included in the purchasing consortium include an arm of Morgan Stanley (NYSE: MS), a Hong Kong-based private equity firm, Abax Global Capital, and a Chinese firm called Full Alliance International Ltd.
Yongye makes a liquid crop nutrient from which it received virtually all its revenues in 2011.
Shares of Yongye are up 18.8% at $5.68 in early trading this morning, in a 52-week range of $2.60 to $5.90. The company’s market cap is around $287 million.
Paul Ausick
The Average American Is Losing Momentum on Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%* today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying nearly 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.