There was plenty of talk of this possibility over the past year or so:http://www.marketwatch.com/story/yongye-international-inc-an...McT(long YONG)
I have mixed feelings about this. On the one hand, a 40%+ premium is not to be looked down, but on the other hand, the fact that knowledgeable local investors are willing to buy out the company dismisses the shortsellers story that the company profits are bogus. And if the company really churns out $.75 in last quarter's earnings, then $6.6 a share is small change for the value of such an incredible business.Any idea what happens to small shareholders who don't sell if the company indeed goes private?
Any idea what happens to small shareholders who don't sell if the company indeed goes private?you won't have a choice if the deal is accepted by the Board's special committee. Your shares will automatically be sold at the offer price when it closes. You do have a couple options in the meantime. You can definitely write to the Board members who will be deciding whether to accept the buyout offer, Mr. Sean Shao, Mr. Xiaochuan Guo and Mr. Xindan Li and express that you are a shareholder and don't believe the offer is a fair price.If they accept the offer and you still feel it is too low, you can always join a class action suit but that may significantly delay when you get paid out for your shares.
I feel like you, I was waiting with a lot of patience and knowing the great risks involved to sell this one at no less than 12 even if it took a long time.But there is nothing we can do.If the deal is aproved and you don't want to sell you will be forced... meaning that when the date comes your broker will "dissapear" your stocks and give you 6.50 or whatever the price of the deal was.Sorry for my bad englishRicardoUruguay
Thanks for the explanation. I didn't know the Board could sell my stock! Sounds at best dubious in terms of governance, considering the buyer is the CEO... but hey, if it is the law, there is not much we can do.As for your suggestion to contact the Board members, I am confident that these venerable gentlemen do not give a damn what I think about the offer.
The Law Firm of Levi & Korsinsky, LLP Announces Investigation into Possible Breaches of Fiduciary Duty by the Board of Yongye International, Inc. in Connection with the Proposed Sale of the Company to its Chairman and CEO11:54a ET October 15, 2012 (Business Wire)Levi & Korsinsky is investigating the Board of Directors of Yongye International, Inc. ("Yongye" or the "Company") (NASDAQ: YONG) for possible breaches of fiduciary duty and other violations of state law in connection with the proposed sale of the Company to a consortium led by its Chairman and Chief Executive Officer, Mr. Zishen Wu.Click here to learn how to join the action: http://zlk.9nl.com/yongye-international-yong, or call: 877-363-5972. There is no cost or obligation to you.Under the terms of the proposed transaction, Yongye shareholders would receive $6.60 per share in cash. The investigation concerns, among other things, whether the proposed consideration to be paid to Yongye shareholders is unfair, inadequate, and substantially below the fair or inherent value of Yongye. In particular, Yongye stock has a reported book value of $7.64 for the most recent quarter.If you own common stock in Yongye and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at firstname.lastname@example.org or by telephone at (212) 363-7500, toll-free: (877) 363-5972, or http://zlk.9nl.com/yongye-international-yong.Levi & Korsinsky is a national firm with offices in New York and Washington D.C. The firm has extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. The attorneys at Levi & Korsinsky have been appointed by numerous courts throughout the country to serve as lead counsel on behalf of shareholders in major securities lawsuits and have successfully recovered multimillion-dollar damages awards on behalf of investors. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.SOURCE: Levi & Korsinsky, LLP Levi & Korsinsky, LLP Joseph Levi, Esq. Eduard Korsinsky, Esq. Tel: 212-363-7500 Toll Free: 877-363-5972 Fax: 212-363-7171 www.zlk.com
M Levy, your investigation seems to the point, but isn't it early to speak of a fiduciary breach by the board before the board has even answered the proposal?
To express your displeasure with the low go private offer, you should be contacting the Board's Special Committee, Mr. Sean Shao, Mr. Xiaochuan Guo and Mr. Xindan Li, who will be evaluating the offer. Explain that you are a shareholder and remind them that it is their fiduciary duty to act in the shareholder's interests. Explain why you think the price is way too low. Make sure you request that they have a majority of the minority shareholder vote IF they do accept any go private offer. Obviously keep it professional and concise. Remember, the Board works for us, the shareholders. I can guarantee that all correspondence will be reviewed by them and legal counsel.I believe that the best way to contact the special committee is to write them at the company's corporate headquarters, and cc a copy to their legal counsel, Cleary Gottlieb, Steen & Hamilton LLP. Use the address from today's press release where the proposal letter was sentSpecial Committee of The Board of Directors ofYongye International, Inc.6th Floor, Suite 608, Xue Yuan International TowerNo. 1 Zhichun Road, Haidian DistrictBeijing, ChinaCleary Gottlieb, Steen & Hamilton LLPTwin Towers - West (23Fl)12 B Jianguomen Wai Da JieChaoyang DistrictBeijing 100022Also might not be a bad idea to scan a signed copy and also email it to investor relations email@example.com and request that they forward it to the committee members and legal counsel.
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