TORONTO, ONTARIO -- (Marketwire) -- 01/08/13 -- Hanfeng Evergreen Inc. (TSX: HF) ("Hanfeng" or the "Corporation") announced that its board of directors has received an unsolicited non-binding proposal from Mr. Xinduo Yu, the Corporation's President and Chief Executive Officer and the holder of approximately 20.2% of Hanfeng's outstanding common shares, pursuant to which a company wholly-owned by Mr. Yu would acquire all of the outstanding common shares not owned by it at a price of CDN$2.20 in cash per share.
The board of directors has previously formed a special committee of independent directors consisting of Loudon Owen (Chairman), Edwin Nordholm and David Thomson to review and consider the privatization proposal. The special committee has retained the services of Deloitte LLP to provide an independent valuation and financial advice and has engaged Osler, Hoskin & Harcourt LLP as its independent legal advisor. The special committee will respond in due course having regard for all applicable legal and regulatory requirements.
The board of directors cautions shareholders and others considering trading in securities of the Corporation that it has only received the proposal and no decisions have been made by the board of directors with respect to the Corporation's response to the proposal. The proposal is non-binding and there can be no assurance that any transaction will be completed or, if completed, of its terms, price or timing. Hanfeng will not be providing further comment at this time but will provide updates as further material information becomes available.
As a result of the process currently underway by the special committee, the decision was made to defer the Corporation's annual meeting of shareholders until February 13, 2013.
About Hanfeng Evergreen Inc.
Hanfeng is a leading producer and supplier of value-added fertilizer solutions in emerging markets. It is the largest producer of slow and controlled release fertilizer in two of world's most significant agricultural markets: the People's Republic of China ("China") and the Republic of Indonesia. As the first company to introduce slow and controlled release fertilizers into China's agriculture market, Hanfeng has established itself both as a market leader and innovator. A Canadian Company, Hanfeng is headquartered in Toronto, Ontario and its shares trade on the Toronto Stock Exchange under the ticker HF.