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Why Pingtan Marine Soared Over 20% Wednesday Morning

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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.

Posted-In: News M&A Movers

 

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