Harbin Electric (Nasdaq: HRBN) shares rose more than 46% to $12.25 on Monday after the company agreed to be bought for $24 a share. A group led by Harbin’s CEO is doing the buying. Harbin Electric said it expects the deal to close in the fourth quarter. Volume for the stock totaled 6.8 million shares, more than five times its all-day average.
The company announced that it has entered into a definitive agreement and plan of merger with Tech Full Electric Company Limited, a Cayman Islands company wholly owned indirectly by Tianfu Yang, the Company’s Chairman and Chief Executive Officer, and Tech Full Electric Acquisition, Inc., a Nevada corporation wholly owned by Parent.
In the June 20 news release regarding the merger, Yang said, “I want to thank the Special Committee for its extremely thorough work in reviewing our offer to take the Company private in order to ensure that the interests of all shareholders of the Company are fully protected.
“I have full confidence that, with the help of its highly respected financial and legal advisors, the Special Committee has thoroughly reviewed and evaluated potential alternatives and has established the credibility of our offer, including the availability of debt financing from China Development Bank Corporation Hong Kong Branch and Abax.”
Harbin Electric, headquartered in Harbin, China, is a leading developer and manufacturer of a wide array of electric motors with a focus on innovative, customized, and value-added products.