Chinese fertiliser company Yongye International has agreed to a private equity-backed $339m management buyout offer.
Under the terms of the deal, a consortium that includes the company’s chairman and CEO Zishen Wu, Lead Rich International and Morgan Stanley Private Equity Asia (MSPEA) will pay $6.69 per share.
The offer price represents a premium of 39.7 per cent to Yongye’s closing price of $4.79 per share on October 12, 2012, which was the last day of trading before the company revealed that it had received a take-private offer.
Zishen Wu and Lead Rich will provide equity funding of $12m and $15m respectively, while China Development Bank has agreed to provide $214m in debt financing.
In addition, the company will receive mezzanine funding of $35m from lead Rich.
MSPEA has made investments totalling $61m in the business since 2011 and held a 12 per cent stake at the end of 2011, according to the Asian Venture Capital Journal.
In August it was reported that MSPEA was pushing to complete its $1.5bn-targeting Asia fundraise “soon” after moving past the point of the year by which it had hoped to close the vehicle.
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