China Nuokang Posts Record Gain as Chairman Proposes Buyout
China Nuokang Bio-Pharmaceutical Inc. (NKBP), a company that develops products used in hospitals, posted a record gain in New York as Chairman Baizhong Xue sought to acquire the shares in the company he doesn’t already own.
Shares of the Shenyang, China-based company surged 26 percent to $4.68 in New York, the most since the company went public in December 2009. The stock had dropped 59 percent since the IPO through yesterday. Volume totaled 158,717 shares, more than 30 times its daily three-month average, data compiled by Bloomberg show.
Xue, who is also the company’s founder, offered $5.80 per New York share, 57 percent above yesterday’s closing price. China Nuokang said in a statement it plans to form a special committee of independent directors to consider Xue’s proposal.
Xue currently owns about 61.2 percent of China Nuokang’s ordinary shares, the company said.
To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net