Ming Yang CEO Makes a ”Going-Private” Pitch

Chinese wind turbine designer and manufacturer China Ming Yang Wind Power Group Limited has received a preliminary non-binding proposal letter from its Chairman and Chief Executive Officer Chuanwei Zhang to buy all of the outstanding ordinary shares of the NYSE-listed company not already in his ownership through a “going-private” transaction.

Zhang, who currently controls 33% of Ming Yang’s shares, offered to buy out the remaining 67% ownership in the company at a price of USD 2.51 per American Depository Share or ordinary share in cash.

According to the proposal letter, Zhang intends to finance the transaction with a combination of debt and equity capital. A portion of the equity financing would be provided from Zhang’s existing shareholdings in Ming Yang, with the remainder of the financing expected to be provided by third party debt and equity financing sources and certain shareholders of the company.

Ming Yang’s Board of Directors will form a special committee which will consist of all independent directors to evaluate the transaction.

The special committee, once formed, is expected to retain advisors, including an independent financial advisor and legal counsel, to assist it in its work.

The company says that there can be no assurance that any definitive offer will be made, that any agreement will be executed, or that this or any other transaction will be approved or consummated.

Ming Yang’s main area of focus is designing, manufacturing, selling and servicing megawatt-class wind turbines, including the Super Compact Drive (SCD) solutions, as well as providing post-sales maintenance and technology upgrade services.

One of the company’s SCD 6.5WM wind turbines was installed at Longyuan Rudong Intertidal Wind Farm in Jiangsu province in 2014.