Beijing-based Yongye International, Inc. says that the agreement for a US$339 million management buyout of the company backed by Morgan Stanley Private Equity Asia (MSPEA) was not approved by the company’s stockholders, according to a company announcement.
The rejection was made at a special meeting of shareholders yesterday.
Yongye’s chairman and CEO, Wu Zishen, MSPEA and related entities proposed to buy all outstanding American Depository Shares (ADS) in 2012. The privatization proposal then received board approval last September.
"We remain confident about Yongye’s business prospects and believe that the Company continues to be very well positioned for sustainable long-term growth," says Wu Zishen in the announcement. "The board of directors and management team look forward to working closely together to explore all appropriate opportunities to maximize value for all of our stockholders."
Yongye is a fertilizer producer with production facilities located in Hohhot, Inner Mongolia, China.