American Lorain Corporation, Junan County, Shandong Province, China, has received a preliminary, non-binding proposal from its Chairman, CEO and President Si Chen, to take the company private by buying all the shares he doesnt already at a proposed price of $1.6 per ordinary share, in cash, subject to certain conditions.
American Lorain's products include frozen and other convenience food products, and chestnuts. It currently sells over 240 products to 26 provinces and administrative regions in China as well as to 42 foreign countries. The company operates through its five direct and indirect subsidiaries and one leased factory located in China.
Chen currently beneficially owns, in the aggregate, approximately 46.5% of American Lorain's outstanding ordinary shares. According to the proposal letter, he will form an acquisition vehicle for the purpose of pursuing the acquisition and the acquisition is intended to be financed by a combination of debt and equity capital.
The company's board of directors has formed an independent committee composed of Dekai Yin, Tad M. Ballantyne and Maoquan Wei, with Yin as its chairman, to consider the proposal. The Independent Committee has the authority to retain independent legal and financial advisors to assist it. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that a transaction with Chen or any other transaction will be approved or consummated.
