Boston, MA 05/23/2013 (wallstreetpr) – The prices of Le Gaga Holdings Ltd ADR (NASDAQ:GAGA) surged by 13.17 percent to close at $3.78 per share for the last trading session. The Chinese green house vegetable developer witnessed heavy trading in its American Depository Receipts where nearly 506,546 ADRs exchanged hands during the day, while the average trading volume is just 8,298 ADRs per day. This heavy trading volume and increase in prices of ADRs was mainly attributed to the offer received by Le Gaga Holdings Ltd ADR (NASDAQ:GAGA) to go private.
Offer to go Private
Le Gaga Holdings Ltd ADR (NASDAQ:GAGA) presently has 45.63 million shares outstanding and had recently received an offer from a group, which includes the company’s present Chairman and CEO, to go private. This group which intends to take over the Chinese green house vegetable provider had consented to pay $4.01 per American Depository share in cash which was fixed up as 20 percent premium over the closing price of the company on Tuesday. This offer price to Le Gaga Holdings Ltd ADR (NASDAQ:GAGA) to go private would value the company at an aggregate of $184.1 million approximately.
Le Gaga Holdings Ltd ADR (NASDAQ:GAGA) is involved in the process of cultivation and distribution of green house vegetables to markets in the People’s Republic of China. The company operates its production in two major business segments namely vegetable business and trees business. While vegetable business primarily involves green house vegetables, the trees business involves cultivation of tea trees and fir trees.