* Agrium Inc votes its shares in favor of deal
* Would pay $2.25 per share, up from first offer
* Shares up nearly 3 pct on TSX
Feb 11 The chief executive of Canadian
fertilizer company Hanfeng Evergreen Inc plans to take
it private, agreeing to buy the nearly 80 percent of shares he
does not already own.
Hanfeng said in a statement on Monday that Agrium Inc
, a much larger Canadian fertilizer company and holder
of about 20 percent of Hanfeng's stock, has agreed to vote its
shares in favor of the deal. Hanfeng, based in Toronto, makes
slow- and controlled-release fertilizer for China and Indonesia.
Hanfeng Chief Executive Officer Xinduo Yu and a corporation
owned by Yu have agreed to pay C$2.25 per share for the 79.6
percent of Hanfeng's stock that he doesn't already own.
The price is a premium of 47 percent over the
volume-weighted price of the shares on the Toronto Stock
Exchange over the 30 trading days prior to Yu's initial offer on
Jan. 8. Yu's first offer was for $2.20 per share.
Hanfeng's shares gained 2.8 percent in early trading in
Toronto at C$2.22.
Yu's interest in taking over the company may be welcome news
for some investors in Hanfeng, as its share price has not
reflected a recent string of solid quarterly results, said
analyst John Chu of AltaCorp Capital, in a note to clients last
Hanfeng will hold a meeting of shareholders on March 15 to
vote on the deal.