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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

YONG SHAREHOLDER ALERT: Wohl & Fruchter Investigating The Acquisition Of Yongye International, Inc. By Full Alliance International Limited

The law firm of Wohl & Fruchter LLP is investigating the proposed acquisition of Yongye International, Inc. (Yongye) (Nasdaq:YONG) by Full Alliance International Limited (Full Alliance).

On September 23, 2013, Yongye announced that, upon the recommendation of a special committee, its board of directors (Board) approved an agreement (Agreement) to be acquired by Full Alliance for $6.69 per share in cash.

The buyout price under the Agreement is a mere 1.4% increase over the $6.60 per share in cash offered in October 2012 by a group that included Full Alliance and Wu.

Under the Agreement, the Company’s CEO, Zishen Wu, will provide $12 million in cash equity financing. Additionally, under a separate voting agreement entered into simultaneously with the Agreement, a group (Voting Group), including Full Alliance and Wu, that currently holds approximately 33.1% of the Company’s shares, has agreed to vote all of their common and preferred shares in favor of the transaction and against any other acquisition proposal with respect to the Company. Under the Agreement, the members of the Voting Group will not receive cash for their shares, but instead are contributing their shares to a wholly-owned subsidiary of Full Alliance.

According to the Company’s latest Form 10-Q, filed on August 9, 2013, the Company had over $254 million, or $5 per share, in cash as of June 30, 2013, and only approximately $94 million in outstanding loans. Additionally, the Company reported outstanding second quarter results under which revenue jumped 69.6% to $301.3 million, while net income more than doubled, increasing 110% to $86.4 million, or $1.50 per share, after adjustments. The CEO said the company's "effective channel management and successful promotional activities" helped boost sales, and reaffirmed full-year revenue guidance, based on shipments, of $650 million - $680 million.

Wohl & Fruchter’s investigation concerns whether the Agreement was motivated by conflicts of interest, and whether Board breached their fiduciary duties to stockholders by agreeing to sell the Company for an inadequate price, and failing to adequately shop the Company before agreeing to enter into the transaction with Full Alliance.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs