NEW YORK (TheStreet) -- Jumei (JMEI) - Get Jumei International Holding Ltd Sponsored ADR Class A Report stock is rising 8.30% to $6.32 on heavy volume in afternoon trading on Wednesday after announcing that its board has received a non-binding letter that proposes a "going private" transaction.
CEO Leo Ou Chen, co-founder Yusen Dai, and shareholder Sequoia funds submitted a letter offering to take the company private for $7 per ADS, according to a statement.
The offer represents a 26.6% premium above the average closing price for the past 10 days.
The buying group owns 54.4% of Jumei stock, and has 90.1% of the company's voting power. The group plans to fund the deal "with a combination of debt and/or equity capital, and rollover equity in the company," the statement continued.
Jumei is a Beijing-based online retailer of beauty products.
About 6.07 million shares of Jumei have been traded so far today, well above the company's average trading volume of roughly 2.4 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Jumei's weaknesses include its feeble growth in its earnings per share, deteriorating net income, poor profit margins and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: JMEI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.