Sequoia offers to buy China veg producer Le Gaga following share slump

0
16

vegetablesSequoia Capital’s China arm has offered to buy Nasdaq-listed Chinese vegetable producer Le Gaga Holdings for $183m through an MBO.

The firm plans to team up with company chairman Na Lai Chiu and CEO Shing Yung Ma for the deal, which is offered at $4.01 per American Depository Share or $0.0802 per ordinary share.

Le Gaga, which sells and markets greenhouse vegetables such as peppers, tomatoes and cucumbers, has seen its share price slump by two-thirds since it was listed in October 2010.

Sequoia was Le Gaga’s first outside investor when it backed a $4m Series A round in 2006, later expanding that by $2m according to Fortune.

It said the firm then invested $5.5m in March 2008 as part of a $24m round which also included SIG China Investments and Walden International.

Le Gaga has formed a special committee to consider the bid due to the involvement of its CEO and chairman in the purchase process.

Copyright © 2013 AltAssets