The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A worker makes packages of fertilizer at the plant of Hanfeng Evergreen Inc. in Jiangyan city, Jiangsu Province, China on 16 Oct 2010. Photo by Kevin Lee for Globe and Mail
A worker makes packages of fertilizer at the plant of Hanfeng Evergreen Inc. in Jiangyan city, Jiangsu Province, China on 16 Oct 2010. Photo by Kevin Lee for Globe and Mail
(Kevin Lee/Kevin Lee for Globe and Mail)

Subscribers only

In Hanfeng privatization, Chinese company plays hardball

The privatization of fertilizer company Hanfeng Evergreen Inc. features some rough and tumble tactics by the company’s main customer, which is threatening to stop buying, at the same time as it possibly seeks to take a stake in the company as part of the acquisition.

In Hanfeng’s regulatory filing Thursday detailing the merger plan, the company’s board said that it recommended that investors vote for the privatization by the company’s chief executive, Xinduo Yu. Mr. Yu has offered $2.25 a share, which is a premium to the recent trading price but far from what Hanfeng fetched even two years ago.