Puda Coal Receives Buy-Out Proposal from Chairman for $12 per Share; Investigation Continues
Puda Coal, Inc. (NYSE: PUDA) today announced that it received a preliminary non-binding proposal from its Chairman, Mr. Ming Zhao to acquire 100% of the outstanding shares of common stock of the Company in a going private transaction at up to $12 per share in cash. Mr. Zhao proposed to finance the proposed acquisition with a combination of existing cash on hand and external financing sources. A copy of Mr. Zhao's proposal is attached to this press release.
In response to the receipt of the proposal, the Company's Audit Committee composed solely of independent directors will review and evaluate the proposal and, if appropriate, negotiate its terms, and take any other action in connection therewith. The Audit Committee has requested detailed information and documentation from Mr. Zhao relating to the proposal, including information pertaining to matters that are subject to the Audit Committee's previously reported on-going investigation, necessary for the Audit Committee to evaluate the proposal and provide a recommendation to shareholders.
The Audit Committee continues to investigate the allegations raised in a recent article alleging various unauthorized transactions in the shares of a subsidiary company, Shanxi Coal, by Mr. Zhao and intends to provide further information when the investigation is complete.
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