An investigation on behalf of investors of Synutra International, Inc. (NASDAQ:SYUT) in connection with the proposed takeover was announced and NASDAQ:SYUT stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/22/2016 -- The buyout of Synutra International, Inc. is under investigation over potential wrongdoing. The investigation on behalf of investors, who currently hold shares of Synutra International, Inc. (NASDAQ:SYUT), was announced concerning whether the takeover of Synutra International, Inc. is unfair to NASDAQ:SYUT stockholders.
Investors who purchased shares of Synutra International, Inc. (NASDAQ:SYUT) and currently hold any of those NASDAQ:SYUT shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The investigation by a law firm concerns whether certain officers and directors of Synutra International, Inc. breached their fiduciary duties owed to NASDAQ:SYUT investors in connection with the proposed acquisition.
On January 15, 2016, Synutra International, Inc. (NASDAQ:SYUT) announced that its board of directors has received a non-binding proposal letter, dated January 14, 2016, from Mr. Liang Zhang , Chairman and chief executive officer of Synutra International, Inc. (NASDAQ:SYUT), and an affiliated entity of his (together with Mr. Zhang, the "Buyer Group"), proposing a "going-private" transaction (the "Transaction") to acquire all of the outstanding common stock (the "Shares") of the Company not already owned by the Buyer Group for US$5.91 in cash per Share, subject to certain conditions.
On November 17, 2016, Synutra International, Inc. (NASDAQ:SYUT) announced it has entered into an Agreement and Plan of Merger with Beams Power Investment Limited, a company with limited liability incorporated under the laws of the British Virgin Islands, and Beams Power Merger Sub Limited, a Delaware corporation and a wholly-owned subsidiary of Beams Power Investment Limited, pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly-owned subsidiary of Beams Power Investment Limited. Under the terms of the agreement, shareholders of Synutra will receive $6.05 in cash for each share of Synutra common stock.
However, given that the Beams Power Investment Limited currently beneficially owns already approximately 63.5% of Synutra International, Inc's outstanding shares of common stock, $0.0001 par value per share ( and that Ms. Xiuqing Meng, spouse of Mr. Liang Zhang, the chairman and chief executive officer of Synutra International, Inc, is the sole shareholder of Beams Power Investment Limited, the investigation concerns whether the offer is unfair to NASDAQ:SYUT stockholders.
In addition, given that at least one analyst has set the high target price for NASDAQ:SYUT shares at $6.74 per share and given that NASDAQ:SYUT shares traded in June 2015 as high as $7.78 per share in the open market, the investigation concerns whether the Synutra International Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Those who are current investors in Synutra International, Inc. shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com