Yongye International Inc (NASDAQ:YONG) Shareholders Block CEO Move To Take Company Private
Yongye International, Inc (NASDAQ:YONG), which is a Beijing. China based agriculture nutrition products, saw its stock tank by close to 10.6 percent during trading on 5th March, when the news broke that its shareholders had voted to reject the proposed merger plan dating back to 23rd September which the company had entered into with Full Alliance International Limited (“Holdco”) and Yongye International Merger Sub Limited.
Press Note Disclosed The Rebuff
The press note by Yongye International, Inc (NASDAQ:YONG) also disclosed the proposal to merge got backing from the share block which was held by Holdco and the share block owned by Prosper Sino Development Limited through its owner Zishen Wu. This resounding no from the share holders leaves the last September agreement null and void.
Responding to the rebuff by his shareholders, Yongye International, Inc (NASDAQ:YONG) Chairman of the Board, President, Chief Executive Officer Zishen Wu (who had led the failed move to take the company private) has been quoted to have said that, “We remain confident about Yongye’s business prospects and believe that the Company continues to be very well positioned for sustainable long-term growth. The Board of Directors and management team look forward to working closely together to explore all appropriate opportunities to maximize value for all of our stockholders.”
Writing On The Wall
In hindsight it seems like the management of Yongye International, Inc (NASDAQ:YONG) had an inclining of the shareholder discontent about the managements move to take the firm private. It had postponed and had differ the share holder meeting two times in the past few weeks, with the intent of gaining more time to win over more shareholding blocks to their side. The September “go private” plan had envisaged its CEO Zishen Wu take the company private in his personal capacity with investment support from other private and institutional investors in a deal which was in the $350 million range.