Jinpan Int'l Receives $4.50/Share "Going Private" Proposal

(RTTNews) - Jinpan International Ltd. (JST) said Tuesday that its Board of Directors has received a preliminary, non-binding proposal letter dated September 15 from Li Zhiyuan, the company's Chairman of the Board of Directors, President, and Chief Executive Officer, and Forebright Smart Connection Technology Ltd., to acquire all of the outstanding common shares of the company not currently owned by the buyer group in a going private deal for $4.50 per common share, subject to certain conditions.

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

Jinpan expects that its Board of Directors will form a special committee consisting of independent directors to consider the proposal. The company also expects that the independent committee will retain a financial advisor and legal counsel to assist it in its work.