BEIJING (dpa-AFX) - Wind turbine manufacturer China Ming Yang Wind Power Group Ltd. (MY) announced Wednesday that it has entered into a definitive merger agreement on February 2, to be acquired by a consortium of investors in an all-cash transaction valued at approximately $408 million.
The consortium includes Chuanwei Zhang, Ming Yang's Chairman and Chief Executive Officer, and certain of his affiliates, Dajun Guangcheng (Shanghai) Capital Fund I, L.P. and Guangzhou Huifu Kaile Investment (L.P.).
Pursuant to the terms of the merger agreement, the Company's ordinary shares and American Depositary Shares will be cancelled in exchange for the right to receive $2.51 in cash without interest,.
The merger consideration represents a premium of 13.1% to the closing price of the Company's ADSs on October 30, 2015, the last trading day prior to the Company's announcement of its receipt of a 'going-private' proposal.
The consortium intends to fund the merger through a combination of cash contributions from the investors.
The Company's board of directors (approved the Merger Agreement and the merger and resolved to recommend that its shareholders vote to authorize and approve the deal.
The merger, which is currently expected to close during the first half of 2016, is subject to customary closing conditions.
Copyright RTT News/dpa-AFX