Highpower Going Private in Q3; Stock Skyrockets 44%
Highpower International Inc. (Nasdaq: HPJ) announced Friday it is going private through a merger later this year, sending its shares soaring 44 percent in early trading to $4.38 apiece.
The company, which makes lithium batteries and battery management systems, will be acquired by a consortium, HPJ Parent Ltd., led by its chairman and chief executive, Dang Yu (George) Pan, according to the statement.
Highpower stockholders will receive $4.80 in cash for each share of common stock, that's a 58 percent premium from yesterday's close.
Under the merger and acquisition agreement, HPJ will fund Highpower with the proceeds of a $51.1 million equity investment by Essence International Capital Ltd., the report stated.
The merger is expected to complete in the third quarter and will result in the delisting of the company from the Nasdaq Global Market.
Highpower, with headquarters in Shenzhen and San Diego, added that the board of directors has previously approved the deal.