China Security Soars as CEO Talks Up LBO
NEW YORK (TheStreet) -- Shares of China Security and Surveillance (CSR) soared by as much as 25% Tuesday on frantic volume after its founder and CEO reiterated his desire to take the company private, this time naming a price of $6.50 a share.
In a letter sent to the company's board, Chief Executive Guoshen Tu said the deal would be a combination of equity and debt, and that he has conducted "preliminary discussions with potential sources of debt financings."
Still, Tu hasn't yet struck an agreement with any of those sources, he said in his letter. Nor did he name the entities he says he has spoken with, noting only that he is "confident the debt financing necessary for the acquisition can be arranged on a timely basis."
China Security, based in Shenzhen, which sits just across the harbor from Hong Kong, is a complex roll-up of Chinese security-equipment manufacturers, especially of surveillance cameras and related gear. It was among the first Chinese issuers to sell stock in the U.S. after coming public on this side of the Pacific, in 2006, through a controversial procedure called a reverse merger.The letter issued Tuesday was similar to one sent by Tu to the company's board in late January, when China Security first made public the CEO's intentions to take the company private. Among the only differences: in January, Tu said the purchase price "will not exceed $6.50 per share." On Tuesday, Tu said the price would be $6.50 a share. Not long after the January move by Tu, China Security's board said it hired the Japanese investment bank Nomura International as its adviser.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV