NEW YORK (TheStreet) -- Shares of Mindray Medical (MR) were gaining 7.4% to $29.50 on heavy trading volume Thursday after the Chinese medical instruments company announced it received a "going private" proposal.
Mindray said that Executive Chairman, President and co-CEO Li Xiting, Co-CEO and Chief Strategic Officer Cheng Minghe, and Chairman Xu Hang sent a preliminary non-binding proposal letter to the board of directors offering to acquire all outstanding shares they don't already own for $30 a share.
The company plans to form a special committee of independent directors to consider the proposal to being the company private, and warned shareholders it hasn't made any decisions on the matter. The company said there is no assurance that an offer will be made, that any agreement can be reached, or that any transaction will be approved.
About 1.6 million shares of Mindray were traded by 11 a.m. Thursday, above the company's average trading volume of about 690,000 shares a day.
TheStreet Ratings team rates MINDRAY MEDICAL INTL as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MINDRAY MEDICAL INTL (MR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."