Yongye International Provides Update on Status of Proposed Go Private Offer
BEIJING, May 17, 2013
BEIJING, May 17, 2013 /PRNewswire-FirstCall/ --Yongye International, Inc.
(NASDAQ: YONG) ("Yongye" or the "Company"), a leading developer, manufacturer,
and distributor of crop nutrient products in the People's Republic of China,
today announced that, on May 16, 2013, the special committee (the "Special
Committee") of the board of directors (the "Board of Directors") was provided
a letter (the "Letter") issued by Abax Global Capital (Hong Kong) Limited
("Abax") to Full Alliance International Limited ("Full Alliance"). The Letter,
dated as of May 15, 2013, informs Full Alliance that Abax remains interested
in pursuing the proposed going private transaction described in the proposal
letter delivered to the Board of Directors on October 15, 2012, on the terms
and conditions as outlined in the amended and restated financing commitment
letter (the "Commitment Letter") issued by Abax to Full Alliance on April 1,
2013, and as amended on April 16, 2013, which expired on May 15, 2013.
According to the Letter, Abax continues to be focused on this transaction and
will re-engage in the going private transaction as soon as the trading
suspension is lifted. Please refer to the enclosed Exhibit A for a copy of the
As a reminder, no decisions have been made by the Special Committee with
respect to the Company's response to the proposed going private transaction.
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.
About Yongye International
Yongye International, Inc. is a leading crop nutrient company headquartered in
Beijing, with its production facilities located in Hohhot, Inner Mongolia,
China. Yongye's principal product is a liquid crop nutrient, from which the
Company derived substantially all of the sales in 2012. The Company also
produces powder animal nutrient product which is mainly used for dairy cows.
Both products are sold under the trade name "Shengmingsu," which means "life
essential" in Chinese. The Company's patented formula utilizes fulvic acid as
the primary compound base and is combined with various micro and macro
nutrients that are essential for the health of the crops. The Company sells
its products primarily to provincial level distributors, who sell to the
end-users either directly or indirectly through county-level and village-level
distributors. For more information, please visit the Company's website at
Safe Harbor Statement
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements of
historical fact included herein are "forward-looking statements." These
forward-looking statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions, involving
known and unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission and
available on the SEC's website (http://www.sec.gov). All forward-looking
statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these risk factors. Other than as
required under the securities laws, the Company does not assume a duty to
update these forward-looking statements.
May 15, 2013
Full Alliance International Limited
c/o Suite 608, Xueyuan International Tower
No. 1 Zhichun Road
Beijing, China 100083
Attention: Mr. Zishen Wu
Ms. Xingmei Zhong
Ladies and Gentlemen:
Reference is made to the financing commitment letter, dated December 28, 2012,
which was amended and restated on April 1, 2013 and further amended on April
16, 2013 (the "Commitment Letter"), issued to Full Alliance International
Limited ("Holdco" or "you") by Abax Global Capital (Hong Kong) Limited, on
behalf of funds managed and/or advised by it and its nominee entities and its
and their affiliates ("Abax" or "we"), in connection with the proposed going
private transaction relating to Yongye International, Inc. (the "Company").
We would like to inform you that Abax remains interested in pursuing the
proposed going private transaction described in the proposal letter delivered
to the Board of Directors of the Company on October 15, 2012 on the terms and
conditions as outlined in our Commitment Letter.
Abax continues to be focused on this transaction and will re-engage in the
going private transaction as soon as the trading suspension is lifted.
Should you have any questions regarding the foregoing, please do not hesitate
to contact us.We look forward to progressing on the transaction.
Very truly yours,
ABAX GLOBAL CAPITAL (HONGKONG)
By: /s/Donald Yang
Name: Donald Yang
Title: Managing Partner and Chief InvestmentOfficer
Ms. Kelly Wang
Finance Director – Capital Markets
Phone: +86-10-8231-9608; +86-10-8232-8866 x 8827
Mr. John Capodanno
Ms. May Shen
Phone: +86 10 8591 1951
SOURCE Yongye International, Inc.
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