China's crop nutrient producer Yongye receives $326.3-mn offer to go private

Yongye International Inc, a leading developer, manufacturer and distributor of crop nutrient products in China, yesterday said that it has received a $326.3 million takeover offer from a consortium that includes its chief executive.

The consortium comprises Zishen Wu, chairman and CEO of Yongye, Full Alliance International Limited, MSPEA Agriculture Holding Limited, a fund managed by Morgan Stanley Private Equity Asia, and Hong-Kong-based investment fund Abax Global Capital.

The consortium is offering to pay $6.60 in cash per share, a premium of approximately 37.8 per cent to the company's closing price on 12 October.

The consortium said in its offer letter that it will form an acquisition vehicle for the acquisition, which it intends to finance through a combination of debt and equity capital.

Yongye said that it has formed a special committee of the board of the directors, to consider the proposal and has retained Cleary Gottlieb Steen & Hamilton as its legal counsel to assist.

Beijing-based Yongye is a leading crop nutrient company with production facilities located in Hohhot in China's Inner Mongolia region.