* Deal for $265.5 mln
* Deal at $9/shr, a premium of 23 pct on Friday's closing
* Says Bank of America, Citibank, HSBC to finance the deal
* Shares up 17 pct after market
May 20 Fire safety products maker China Fire &
Security Group Inc said it agreed to be acquired by
Amber Parent Ltd -- an affiliate of private investment firm Bain
Capital Partners and Amber Mergerco Inc -- for $265.5 million.
Under the merger agreement, Beijing-based China Fire &
Security Group will get $9 per share in cash representing a
premium of about 23 percent on the stock's closing price on
China Fire & Security Group chairman Weigang Li and certain
other members of management, who collectively have 59.14 percent
of the total voting power of the company, have agreed to vote
for the adoption of the merger agreement.
The merger is expected to close before Nov. 15.
In March, the company had said it received a proposal from a
private equity firm to buy all its outstanding shares in cash.
U.S.-listed Chinese companies are seeing a trend of buyouts
by management and private equity funds, which aim at taking
advantage of depressed valuations on U.S. stock exchanges and
look to relist elsewhere. [ID:nSGE6AE11O]
Underwriters Bank of America NA, Citibank NA and the
Hongkong and Shanghai Banking Corp Ltd have agreed to provide
financing for the deal.
Shares of the company were up 17 percent at $8.56 after the
bell. The stock closed at $7.33 on Friday on Nasdaq.
(Reporting by Soham Chatterjee in Bangalore; Editing by Prem