This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Feb. 24, 2012 /PRNewswire/ -- Gushan Environmental Energy Limited ("
Gushan" or the "
Company"; NYSE: GU), a leading producer of biodiesel and manufacturer of recycled copper products in
China, today announced that its Board of Directors has received a preliminary non-binding proposal letter dated
February 24, 2012, from Mr. Jianqiu Yu, Chairman and Principal Executive Officer of Gushan, to acquire all of the outstanding ordinary shares of the Company not currently owned, legally or beneficially, by Mr. Jianqiu Yu (the "
US$1.599 per American Depositary Share ("
US$0.1599 per ordinary share in cash. As of the date hereof, the Buyer controlled approximately 34.8% of the outstanding shares of the Company.
According to the proposal letter, the Buyer will form a transaction vehicle for the purpose of pursuing the proposed transaction and will finance the proposed transaction with his own funds, possibly supplemented by debt financing. The proposal letter also states that Sidley Austin LLP has been engaged by the Buyer as legal counsel in connection with the proposed transaction. A copy of the proposal letter is attached hereto as Exhibit A.
The Company's Board of Directors has formed a special committee of independent directors (the "
Special Committee") consisting of Messrs.
Denny Ting Bun Lee,
Kang Nam Chu and
Dongming Zhang to consider the proposed transaction. The Special Committee intends to retain advisors, including an independent financial advisor and legal counsel, to assist it in its work. No decisions have been made by the Special Committee with respect to the Company's response to the proposed transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.
About Gushan Environmental Energy Limited
Gushan is a leader in the
China biodiesel industry, in terms of annual production capacity, and one of the leading biodiesel producers in
Asia, in terms of nominal capacity. Gushan produces biodiesel, a renewable, clean-burning and biodegradable fuel and a raw material used to produce chemical products, primarily from used cooking oil, and by-products from biodiesel production, including glycerine and plant asphalt. Gushan sells biodiesel directly to users, such as marine vessel operators and chemical factories, as well as to petroleum wholesalers and individual retail gas stations. The Company has seven production facilities, located in the
Hunan provinces and in
Chongqing, with a combined annual production capacity of 490,000 tons. Gushan's
Sichuan production facility is currently in operation. Gushan also operates a copper products business through Engen Investments Limited ("Engen"), a 75%-owned subsidiary, that manufactures copper rods, copper wires, copper granules and copper pads primarily from recycled copper. Currently, Engen has two plants, with a daily production capacity of approximately 210 tons of recycled copper products.
Exhibit AFebruary 24, 2012
Board of Directors Gushan Environmental Energy Limited No. 37, Golden Pond Road Golden Mountain Industrial District
Fujian ProvincePeople's Republic of China