A buyer consortium—including Yongye CEO Zishen Wu and Morgan Stanley Private Equity Asia—acquired the firm for $6.60 per share .
The transaction was heavily backed by $214 million in debt financing from the China Development Bank. Key Takeaways:
Yongye stopped trading on the NASDAQ, aiming to eliminate the high costs and regulatory burdens of being a US-listed foreign entity.
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Small-cap Chinese stocks faced intense scrutiny and fraud worries, severely suppressing share prices, with Yongye bottoming out in 2012.
The merger turned Yongye into a wholly-owned subsidiary of Full Alliance International Limited.
This transaction highlights the trend of U.S.-listed Chinese firms returning to private ownership to restructure and re-evaluate their capital access in a more challenging regulatory environment.
This move allowed the company to focus on its Inner Mongolia operations and growth strategy without the pressure of quarterly public reporting.