China Ming Yang Wind Power Group Limited has entered into a definitive merger agreement pursuant to which a consortium of investors led by the company’s Chairman and CEO Chuanwei Zhang will buy all of the remaining shares in the turbine manufacturer.
Zhang, who previously held a 33% of the issued and outstanding ordinary shares of Ming Yang, made an offer to buy the remaining 67% of the company for USD 2.51 per American Depository Share (ADS) in November 2015, an offer which has now been accepted by the company’s Board of Directors.
The consortium intends to fund the merger through a combination of cash contributions from the investors pursuant to equity commitment letters in an amount of USD 124 million, and debt financing in an amount up to USD 106 million, pursuant to a debt commitment letter provided by China Construction Bank Guangdong Branch.
The transaction values the company’s equity at approximately USD 408 million.
The merger, currently expected to close during the first half of 2016, is subject to customary closing conditions. If completed, the merger will result in Ming Yang becoming a privately-held company and its ADSs will no longer be listed on the New York Stock Exchange.