Synutra International, Inc. (NASDAQ:SYUT) Investor Investigation Over Possible Breaches Of Fiduciary Duties In Buyout Offer Announced

If you purchased shares of Synutra International, Inc. (NASDAQ:SYUT) and currently hold any of those NASDAQ:SYUT shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Synutra
Affected Securities: 
NASDAQ: SYUT

November 28, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Synutra International, Inc. (NASDAQ:SYUT), was announced concerning whether the takeover of Synutra International, Inc. is unfair to NASDAQ:SYUT stockholders.

The investigation by a law firm concerns whether certain officers and directors of Synutra International, Inc. breached their fiduciary duties owed to NASDAQ:SYUT investors in connection with the proposed acquisition.

On January 15, 2016, Synutra International, Inc. (NASDAQ:SYUT) announced that its board of directors has received a non-binding proposal letter, dated January 14, 2016, from Mr. Liang Zhang , Chairman and chief executive officer of Synutra International, Inc. (NASDAQ:SYUT), and an affiliated entity of his (together with Mr. Zhang, the "Buyer Group"), proposing a "going-private" transaction (the "Transaction") to acquire all of the outstanding common stock (the "Shares") of the Company not already owned by the Buyer Group for US$5.91 in cash per Share, subject to certain conditions.

On November 17, 2016, Synutra International, Inc. (NASDAQ:SYUT) announced it has entered into an Agreement and Plan of Merger with Beams Power Investment Limited, a company with limited liability incorporated under the laws of the British Virgin Islands, and Beams Power Merger Sub Limited, a Delaware corporation and a wholly-owned subsidiary of Beams Power Investment Limited, pursuant to which Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly-owned subsidiary of Beams Power Investment Limited. Under the terms of the agreement, shareholders of Synutra will receive $6.05 in cash for each share of Synutra common stock.

However, given that the Beams Power Investment Limited currently beneficially owns already approximately 63.5% of Synutra International, Inc’s outstanding shares of common stock, $0.0001 par value per share ( and that Ms. Xiuqing Meng, spouse of Mr. Liang Zhang, the chairman and chief executive officer of Synutra International, Inc, is the sole shareholder of Beams Power Investment Limited, the investigation concerns whether the offer is unfair to NASDAQ:SYUT stockholders.

In addition, given that at least one analyst has set the high target price for NASDAQ:SYUT shares at $6.74 per share and given that NASDAQ:SYUT shares traded in June 2015 as high as $7.78 per share in the open market, the investigation concerns whether the Synutra International Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.