Jinpan Int'l Announces Receipt Of Going Private Proposal At $8.80 Per Share

(RTTNews) - Jinpan Int'l Limited (JST) announced that its Board has received a preliminary, non-binding proposal letter dated September 21, 2014 from Li Zhiyuan, the company's Chairman of the Board of Directors, President, and Chief Executive Officer and FNOF E&M Investment Limited, to acquire all of the outstanding common shares of the company not currently owned by the Buyer Parties in a going private transaction for $8.80 per share.

According to the proposal letter, an acquisition vehicle will be formed for the purpose of completing the acquisition, and the acquisition is intended to be financed through a combination of debt and equity capital.

The company said equity financing will be provided by the Buyer Parties in the form of cash and debt financing will be primarily provided by third party financial institutions. Jinpan also expects that its board of directors will form a special committee consisting of independent directors to consider this proposal.

The company also said it expects that the Independent Committee will retain a financial advisor and legal counsel to assist it in its work and cautions its shareholders and others considering trading in its securities that the board just received the non-binding proposal and no decision has been made with respect to the Company's response to the proposal.

There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated, according to the company.