This Day On The Street
Continue to site
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs