Pingtan announces receipt of offer to acquire assets of dredging operations subsidiary.
M2 EQUITYBITES-July 30, 2013-Pingtan announces receipt of offer to acquire assets of dredging operations subsidiary(C)2013 M2 COMMUNICATIONS http://www.m2.com
Pingtan Marine Enterprise Ltd (Nasdaq:PME), a provider of territorial sea fishing and dredging services in the People's Republic of China (PRC), announced on Monday the receipt of an offer from Xinrong Zhuo, the company's chairman and CEO, to acquire the assets of China Dredging Group (CDGC) and its PRC operating subsidiaries, Fujian Xing Gang Port Service Co Ltd.
Under the terms of the acquisition proposal, Zhuo has offered to purchase the CDGC business and assets in exchange for writing off the company's current USD155.2m promissory note, which matures on 19 June 2015 and bears an interest rate of 4%, and the transfer certain fishing trawlers to the company.
As a part of the process to consider the proposed terms of the offer, the company's board has retained an independent financial advisor and investment banking firm, Duff & Phelps LLC, to provide a fairness opinion in connection with a proposed transaction. Also, the board has retained, BMI Appraisals Limited, a valuation company in Hong Kong and China, to provide an independent valuation report on the vessels that would constitute a portion of the consideration.
Reportedly, Zhuo and the company's senior officer, Bin Lin, have recused themselves from all board discussions regarding the proposed transaction due to their position as interested parties in the sale.
According to the company, its board is expected to continue evaluating the proposed transaction. A decision on the final terms and conditions is expected to be delivered in the coming weeks.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jul 30, 2013|
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