Fuwei Films (Holdings) Co., Ltd (NASDAQ:FFHL) which is a Chinese based small cap firm which is into providing solutions for packaging and solution containers to the transport industry has disclosed on 25th March, after business close that there has been significant progress in the efforts its controlling stake owner “The Weifang State-owned Assets Operation Administration Company” in finding suitable owners to buyout its stake controlling stake in the firm.
Weifang State-owned Asset Management and Supervision Committee is the parent company of the subsidiary Weifang State-owned Assets Operation Administration Company, which holds nearly 52.9 percent of the overall shares of common stock issued by Fuwei Films (Holdings) Co., Ltd (NASDAQ:FFHL). The investor had been going through a well orchestrated public auction to find appropriate strategic investors, who could come in and take over its interest in the packaging firm at a premium.
Sale Price Of $16.5 M Agreed Upon
Yesterday Fuwei Films (Holdings) Co., Ltd (NASDAQ:FFHL) reported that Weifang Administration Company has managed to freeze on a specific buyer who is ready to buyout the entire controlling stake of more than 6.9 million shares for a consideration of $16.5 million. This translates to the shares being valued at $2.4 per share, which is more than 60 percent more than its current trading price of $1.49 per share.
Successful Bidder Not Yet Identified
The name and identity of the successful bidder of the controlling stake was not immediately disclosed by either Fuwei Films (Holdings) Co., Ltd (NASDAQ:FFHL) or Weifang Administration Company. One might have to wait for the formal SEC filing which the new owners will have to file immediately on assuming ownership of the controlling stake in the stock.
It is of interest to note here that on 7th March, the $24 million market capped firm had disclosed that it had received notice form its principal share holder Weifang Administration Company that it had lined up the 5th round of public auction of the stock.