NEW YORK (TheStreet) -- Shares of JA Solar (JASO) were surging 11.8% to $9.03 on Friday after the solar energy company received a buyout proposal from Chairman and CEO Baofang Jin and his company, Jinglong Group.
In the proposal, Jin offered to acquire the company for $9.69 an American Depositary Share to bring JA Solar private. Each ADS represents five ordinary shares of the company.
JA Solar said it plans to form a special committee of independent directors to consider Jin's proposal. The company said it has not made any decisions yet, and that there is no assurance that a definitive offer will be made, or that any agreement will be offered.
About 2.2 million shares of JA Solar were traded by 9:54 a.m. Friday, above the company's average trading volume of about 1.8 million shares a day.
TheStreet Ratings team rates JA SOLAR HOLDINGS CO LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate JA SOLAR HOLDINGS CO LTD (JASO) 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 robust revenue growth, increase in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including poor profit margins, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."