Fushi Copperweld enters merger agreement

Fushi Copperweld Inc. recently announced it has entered into an Agreement and Plan of Merger with certain companies and a global capital group, Abax. The news relates to global commodities and conductors supply chains, as Fushi combines copper and steel to create its conductors and other products.

The merger agreement includes a decision that each share of the company's common stock issued and outstanding before the merger will be converted into the option to receive $9.50 in cash without interest.

"The Special Committee undertook an extremely thorough and comprehensive review of the offer presented by Mr. Fu and Abax to ensure that the interests of all Fushi shareholders not participating in the buyout proposal were best served," said Jack Perkowski, chairman of the special committee. "With the assistance of independent financial and legal advisors, we established the credibility of the offer, including the availability of committed debt financing from China Development Bank Corporation Hong Kong Branch."

The merger is currently subject to approval by the company's shareholders.

Fushi Copperweld ended June 28 down 0.15 points on the NASDAQ, showing news of the merger didn't have an immediate positive effect on the company's outlook.