Chinese meat firm Zhongpin is set to be taken private by its chairman and chief executive.
Nasdaq-listed Zhongpin announced today (26 November) chairman and CEO Xianfu Zhu had agreed to pay US$13.50 a share for the company.
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Zhongpin said the offer represented a premium of around 47% on the price the company’s shares closed at on 26 March, the day before the CEO tabled his plan.
Two weeks after Zhongpin announced Zhu’s proposal, the US Securities and Exchange Commission froze the assets of six Chinese citizens and one company charged with insider trading in the shares in Zhongpin.
The company sells pork products and fresh produce. Earlier this month, Zhongpin reported a fall in profits for the nine months to September despite higher sales. Zhongpin reported higher labour costs as it expanded, plus an increase in promotions.
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