The law firm of Wohl & Fruchter LLP has commenced an investigation into the proposal by the Chairman and Chief Executive Officer of China Natural Gas, Inc. (CNG) (NASDAQ:CHNG) to acquire the publicly-held shares of CNG at a price of $4.25 per share in cash.
On June 30, 2011, CNG issued a press release announcing that its Chairman, Qinan Ji, had informed a Special Committee of the Board of Directors of CNG that he intended to work with a consortium of investors to conduct the “going private” transaction.
The proposed acquisition price is at a discount to CNG’s 30-, 60- and 90-day trailing closing prices, and appears timed to exploit the recent run-down in the company’s stock price.
Wohl & Fruchter’s investigation concerns the fairness of the terms proposed by Mr. Ji, the causes of CNG’s stock price decline in the weeks leading up to Mr. Ji’s announcement, and the adequacy of the procedures adopted by CNG to address Mr. Ji’s proposal.Additional information is available at http://www.wohlfruchter.com/cases/chng. Persons with relevant information, and CNG shareholders with questions about this investigation, are invited to contact our Firm. About Wohl & Fruchter Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners. This release may be deemed to constitute attorney advertising.