Harbin CEO, backed by Baring PE, makes bid

Harbin Electric’s chief executive, Tianfu Yang, and Baring Private Equity Asia Group, have made a bid worth $745.7 million for the Chinese electric motor manufacturer. Yang already owns around 31.1 percent of the shares and is offering $24 per share for the rest. It represents a 20 percent premium on Friday’s closing price.

(Reuters) – Harbin Electric Inc said its board received a buyout offer from Chief Executive Tianfu Yang and Baring Private Equity Asia Group, valuing the Chinese maker of electric motors at $745.7 million.

Yang, who already owns about 31.1 percent of Harbin’s shares, has along with the fund, offered $24 per share for the rest of the company. The offer price is a 20 percent premium to Harbin’s Friday close.

Yang and the fund intend to fund the acquisition with a combination of debt and equity capital, and the equity portion of the financing would be provided by Yang, Harbin said.

The company said it has formed a special committee of independent directors to consider the proposal.

Goldman Sachs (Asia) will be the financial advisor to Yang and the Baring Fund, Harbin quoted the offer letter as saying.

Harbin’s shares, which have gained 31 percent in value since touching a year low of $15.26 in July, closed at $19.96 Friday on Nasdaq.

(Reporting by Divya Sharma in Bangalore; Editing by Gopakumar Warrier)