Here's Why Jumei International Gained 8% On Wednesday

Shares of

, a China-based online retailer of beauty products surged higher by 8 percent and traded as high as $6.39 on Wednesday after the company

a non-binding going private proposal. Jumei International's Founder, Chairman and CEO Leo Ou Chen, along with a consortium of investors, offered to acquire the company and take it private by buying all the outstanding shares of Jumei not already owned by the consortium for $7.00 in cash per American depositary share (ADS). Chen's going private proposal represents a 26.6 percent premium above the average closing price of the company's ADS over the past 10 trading days. The consortium of buyers already own approximately 54.4 percent of all Jumei International's stock and hold approximately 90.1 percent of the aggregate voting power. Jumei International's Board of Directors will evaluate the proposal independently before it will make a determination to support the buyout. In the meantime, no decisions have been made and there can be no assurance that any offer will be executed and approved.