Gushan's board gets go-private offer

Reuters News
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Posted: Feb 24, 2012 9:43 AM
Gushan's board gets go-private offer

(Reuters) - Biodiesel producer Gushan Environmental Energy Ltd said it received a takeover offer from its chairman, valuing the company at about $30.7 million.

Gushan said Chairman Jianqiu Yu, who holds about 34 percent of the company, will form a transaction vehicle for the proposed deal and will finance it with own funds and debt financing.

The company's board has formed a committee of independent directors to consider the cash offer of $1.599 per American Depositary Share, a premium of 26 percent to the stock's Thursday close.

Gushan shares were trading up 22 percent before the bell on Friday. They closed at $1.23 on Thursday on the New York Stock Exchange.

Gushan sells biodiesel directly to users, such as marine vessel operators and chemical factories, and to petroleum wholesalers and retail gas stations.

(Reporting by Vaishnavi Bala in Bangalore; Editing by Saumyadeb Chakrabarty)