The Shareholders Foundation announces that the investigation on behalf of investors, who purchased shares of Yongye International Inc (NASDAQ:YONG) and currently hold NASDAQ:YONG shares, continues concerning whether the offer to acquire Yongye International Inc for $7.10 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.
On March 27, 2014, Yongye International, Inc. announced that the special committee of its board of directors has received a revised proposal dated March 26, 2014 from Mr. Zishen Wu, the Company’s Chairman and Chief Executive Officer, MSPEA Agriculture Holding Limited, Lead Rich International Limited and Full Alliance International Limited in connection with the proposed merger under the agreement and plan of merger dated as of September 23, 2013. In the Revised Proposal, the Buyer Consortium proposed to increase the merger consideration payable to holders of shares of common stock, par value $0.001 per share, of the Company (the “Shares”) under the Merger Agreement, from $6.69 per Share to $7.00 per Share. On April 9, 2014, Yongye International, Inc. (NASDAQ announced that it accepted the revised “Going Private” proposal at $7.10 per share and entered into amendment to merger agreement.
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.
On April 29, NASDAQ:YONG shares closed at $6.99 per share.
Those who are current investors in Yongye International Inc (NASDAQ:YONG) and purchased their Yongye International Inc shares prior to the announcement, have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com