PEKING (dpa-AFX) - Yongye International Inc. (YONG) , a developer, manufacturer and distributor of crop nutrient products in China, announced that its board has received a preliminary, non-binding proposal from Zishen Wu , the Company's Chairman and Chief Executive Officer, (ii) Full Alliance International Limited , (iii) MSPEA Agriculture Holding Limited, and (iv) Abax Global Capital (Hong Kong) Limited, on behalf of funds managed and/or advised by it and its nominee entities and its and their affiliates or collectively the 'Buyer Parties', to acquire all of the outstanding shares of common stock of the Company not currently owned by the Buyer Parties in a going private transaction for $6.60 per share of common stock in cash, subject to certain conditions.
According to the proposal letter, an acquisition vehicle will be formed for the purpose of completing the acquisition, and the acquisition is intended to be financed through a combination of debt and equity capital. The proposal letter stated that the Buyer Parties have been in discussions with a Chinese bank which is experienced in financing going private transactions and has expressed interest in providing loans to finance the acquisition.
Yongye said that a special committee of the Board of the Directors, consisting of Sean Shao, Xiaochuan Guo and Xindan Li, was formed to consider certain potential transactions involving the Company (including this proposal) and has retained Cleary Gottlieb Steen & Hamilton LLP as its legal counsel to assist it in consideration of such matters.
Yongye's Board cautioned the company's stockholders and others considering trading in its securities that the Board has just received the non-binding proposal from the Buyer Parties and that no decisions have been made by the Special Committee with respect to the Company's response to the proposal.
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© 2012 AFX News
