An investigation on behalf of investors in shares of Yongye International Inc (NASDAQ:YONG) in connection with the proposed takeover was announced and NASDAQ:YONG stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/02/2013 -- An investigation on behalf of investors, who purchased shares of Yongye International Inc (NASDAQ:YONG) and currently hold NASDAQ:YONG shares, was announced concerning whether the offer to acquire Yongye International Inc for $6.60 per share and the takeover process are unfair to investors in NASDAQ:YONG shares.
Investors who purchased shares of the Yongye International Inc (NASDAQ:YONG) prior to October 15, 2012, and currently hold any of those NASDAQ:YONG shares have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of Yongye International Inc breached their fiduciary duties owed to NASDAQ:YONG investors in connection with the proposed acquisition.
On October 15, 2012, Yongye International, Inc. (NASDAQ: YONG) announced that its Board of Directors has received a preliminary, non-binding proposal letter dated October 15, 2012 from the Company's Chairman and Chief Executive Officer, Full Alliance International Limited, MSPEA Agriculture Holding Limited and 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 to acquire all of the outstanding shares of common stock of Yongye International, Inc. (NASDAQ: YONG) 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.
On Sept. 23, 2013, Yongye International, Inc. (NASDAQ: YONG) announced that the Company has entered into an Agreement and Plan of Merger with Full Alliance International Limited ("Holdco"), a British Virgin Islands company, Yongye International Limited ("Parent"), a Cayman Islands exempted company with limited liability, and Yongye International Merger Sub Limited, a Nevada corporation and a wholly-owned, direct subsidiary of Parent ("Merger Sub").Pursuant to the Merger Agreement, upon completion of the Merger, each of the Company's shares of common stock issued and outstanding immediately prior to the effective time of the Merger (the "Shares") will be converted into the right to receive US$6.69 in cash without interest, except for (i) Shares owned by Holdco, Parent and Merger Sub, including shares to be contributed to Parent by Holdco, Mr. Zishen Wu, Prosper Sino Development Limited and MSPEA Agriculture Holding Limited, immediately prior to the effective time of the Merger pursuant to a contribution agreement, dated as of September 23, 2013, among Parent, Holdco, Mr. Zishen Wu, Prosper Sino Development Limited and MSPEA Agriculture Holding Limited, and (ii) Shares held by the Company or any subsidiary of the Company ((i) and (ii) collectively, the "Excluded Shares"), which will be cancelled and cease to exist as of the effective time of the Merger.
However, given that NASDAQ:YONG shares traded during 2011 as high as $8.25 and in 2010 as high as $8.88 per share, the investigation a law firm concerns whether the proposed transaction is unfair to NASDAQ:YONG stockholders. Furthermore, Yongye International Inc financial performance improved over the past years. In fact, Yongye International Inc (NASDAQ:YONG) reported that its annual Revenue rose from $98.09 million in 2009 to $442.99 million in 2012 and its Net Income increased from $2.20 million in 2009 to $93.68 million in 2012. Therefore, the investigation focuses on whether the Yongye Intl Board of Directors undertakes an adequate sales process, adequately shops the company before entering into the transaction, maximizes shareholder value by negotiating the best price, and acts in the shareholders' best interests in connection with the proposed sale.3
On Oct. 1, 2013, NASDAQ:YONG shares closed at $6.26 per share.
Those who are current investors in shares of Yongye International Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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