Sequoia, Yiheng Capital On Way To Take Le Gaga Private

Hong Kong-based greenhouse vegetable producer Le Gaga Holdings Limited has entered into a definitive agreement with an investor consortium including Sequoia Capital and Chinese hedge fund Yiheng Capital to take the NASDAQ-listed company private, according to a company announcement.

The investors, which also include the company’s senior management, will pay US$4.06 per American Depositary Share (ADS), representing a 21.56% premium over the closing price US$3.34 on May 21, 2013 before the proposal was first announced.

The deal will be financed through a combination of a cash investment by Yiheng Capital and a term loan of  US$30 million from China Minsheng Banking Corp.

The transaction is currently expected to close during the second half of 2014.

Le Gaga previously received US$4 million series A financing from Sequoia Capital in 2006, according to media reports.

Two years later, Sequoia also participated in an undisclosed series B round. Le Gaga eventually raised US$103 million in an IPO on the NASDAQ in 2010.

Le Gaga sells and markets greenhouse vegetables such as peppers, tomatoes, cucumbers and eggplants, as well as green leafy vegetables to wholesalers, institutional customers and supermarkets in China and Hong Kong.

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