Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Le Gaga Holdings: A Buyout Arbitrage Opportunity

Le Gaga Holdings (NASDAQ:GAGA) ("Gaga" or "the company") has been a short sellers' best friend since going public in late 2010. That may be about to change. American Depositary Shares ("ADS") were offered at $9.50 apiece, and represent 50 ordinary shares. The price of the shares post-IPO declined swiftly and precipitously, and today the ADS fetch $3.66 apiece.

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I was attracted to the company when I learned about a "go private" transaction announced by a consortium of buyers, including Na Lai Chui, the Chairwoman of the Board, Shing Yung Ma, the Chief Executive Officer and Sequoia Capital China, a reputable private equity firm (collectively, "the Consortium"). The go private offer was announced on May...

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