China-based international processed foods company American Lorain announced yesterday that its board of directors has received a preliminary, nonbinding proposal letter, dated Oct. 9, from Chairman, CEO and President Mr. Si Chen to acquire all of the company's outstanding ordinary shares not currently owned by Mr. Chen for a proposed price of $1.6 cash per ordinary share (subject to certain conditions). Currently, Mr. Chen beneficially owns, in the aggregate, around 46.5 percent of the company's outstanding ordinary shares.
Mr. Chen will, according to the proposal letter, form an acquisition vehicle to pursue the acquisition, which is intended to be financed by a combination of debt and equity capital. American Lorain Corporation's board of directors has formed an independent committee consisting of Mr. Dekai Yin, Mr. Tad M. Ballantyne, and Mr. Maoquan Wei - with Mr. Yin elected as its chairman - to consider the proposal.
Authority to retain the assistance of independent legal and financial advisors rests with the independent committee. The committee has appointed Sidley Austin LLP to serve as its legal counsel.
Based in in the Shandong Province of China, American Lorain Corporation is a company specializing in processed snack foods, convenience foods, and frozen foods; the company's products also include chestnut products. The company sells more than 240 products to 26 provinces and administrative regions in China, as well as to 42 foreign countries. American Lorain Corporation operates through its five direct and indirect subsidiaries, as well as one leased factory located in China.
For more information, visit the company's Web site at www.americanlorain.com
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