Why Pingtan Marine Soared Over 20% Wednesday Morning
Pingtan Marine Enterprise Ltd (NASDAQ: PME) opened Wednesday trading up almost 21 percent following the announcement of an agreement with the China Agriculture Industry Development Fund.
By February 13, a deal is expected to be finalized, with the Fund investing an equivalent of $64 million for an 8 percent stake in Pingtan Marine.
Pingtan is an ocean fishing business that operates 126 vessels, while the China Agriculture Industry Development Fund is a state-owned fund.
Regarding the deal, the purchase would price the company at $800 million in terms of current foreign exchange rates, almost four times Pingtan's current market cap.
As of Wednesday afternoon, Pingtan is trading down 0.67 percent.
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