Chinese Fertilizer Maker to Go Private

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

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.