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
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
