8K - On October 15, 2012, Yongye International, Inc. (the “Company”) issued a press release announcing the receipt of a “going private” proposal from (i) Mr. Zishen Wu, the Company’s Chairman and Chief Executive Officer, (ii) Full Alliance International Limited, (iii) MSPEA Agriculture Holding Limited, and (iv) 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. According to the proposal letter, an acquisition vehicle will be formed for the purpose of completing the acquisition at a purchase price of $6.60 per share of common stock in cash, subject to certain conditions, which purchase price is intended to be financed through a combination of debt to be primarily provided by third party financial institutions and equity capital to be provided by the buyer parties or their affiliates in the form of cash and/or rollover equity in the Company. The proposal letter states that the buyer parties have been in discussions with a Chinese bank which is experienced in financing going private transactions and has expressed interest in providing loans to finance the acquisition.
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The Board of Directors formed a committee to examine the offer and hired firms to help. They have not recommended the offer.
That's what we are waiting on.
There are lawsuits open against the Directors because $6.60 is too low. It's now a class action with a lead firm.
So the committee can do three things.
1. Accept $6.6 and go to court.
2. Reject the offer, and the current lawsuit is dropped. (It's possible more lawsuits would open because they rejected it.)
3. Ask for more money that the current lawsuits would find acceptable.
I would be okay with #1 and #3
#2 would be very bad.
