Shares in Yintech, Fuling Global Soar on Buyout Proposals

A surge in going-private deals for U.S.-listed Chinese companies can be traced in recent months.

Belinda Zhou
    Jun 22, 2020 9:00 AM  PT
Shares in Yintech, Fuling Global Soar on Buyout Proposals
author: Belinda Zhou   

Chinese companies Yintech Investment Holdings Ltd. (Nasdaq: YIN) and Fuling Global Inc. (Nasdaq: FORK) saw their stocks jump in trading Monday after both announced they received going-private proposals.

Yintech, a Shanghai-based investment manager, said in the statement today that the company board received a non-binding proposal from the management team to acquire the remaining shares at a purchase price of $6.80 per American depositary share. That's a 29% premium to Friday's closing level of $5.29 per ADS.

The buyer group includes the head of the company and co-founders of Yintech, Wenbin Chen, Ming Yan, and Ningfeng Chen. 

In response to the announcement, the stock in Yintech soared to $6.25 per share in early trading on Monday, up 18%.

Meanwhile, Fuling Global also said it has received a preliminary non-binding proposal from its founder and an individual financial investor.

Guilan Jiang, the founder and chairwoman of Fuling Global, together with her family members and investor Qijun Huang have proposed to acquire all of the outstanding ordinary shares of the company at $2.18 per share.

In response, the Chinese maker of plastic and paper products jumped 4% to $2.13 per share midday Monday.

Lately, a number of Chinese companies have announced going-private deals. Just last week, an auto solutions provider Bitauto Holding Ltd. (NYSE: BITA), and China's largest online marketplace for classifieds, Inc. (NYSE: WUBA) had announced they accepted buyout proposals.