Fushi Copperweld has received a buyout offer from its chief executive, along with private equity shop Abax Global Capital, Reuters reported. The offer values the Chinese wiremaker at $433.8 million. Abax Global, along with chief executive Li Fu, offered $11.50 per share for the company – a 26% premium over the company’s closing price Tuesday. CEO Li Fu already owns 29.9% of the company, Reuters said.
(Reuters) – Chinese wire maker Fushi Copperweld Inc said its chief executive, along with private equity fund Abax Global Capital, offered to take the company private in a deal that values the company at $433.8 million.
The offer of $11.50 per share is at a 26 percent premium to the stock’s closing price on Tuesday on Nasdaq. Shares of the company were up about 25 percent in pre-market trade on Wednesday.
CEO Li Fu, who already owns 29.2 percent of the company’s shares, and Abax will finance the acquisition with a combination of debt and equity, and the equity portion of the financing would be provided by Fu, the company said.
Beijing-based Fushi, which has $117.87 million in cash and equivalents and $5.94 million in long-term debt, makes wires used in a variety of telecommunication, utility, transportation and other electrical applications.
Last month, Chinese motor maker Harbin Electric Inc received an offer from its CEO and Baring Private Equity Asia Group Ltd to take the company privte. [ID:nSGE69A13] (Reporting by Divya Sharma in Bangalore; Editing by Unnikrishnan Nair)