Ossen Innovation (OSN) Stock Rockets On Takeover Offer

Ossen Innovations OSN Stock News

Ossen Innovation Co Ltd (NASDAQ: OSN) is running for the top in the market this morning, and for good reason. The company announced that it has received a non-binding offer to be acquired. Here’s what’s going on:

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OSN Announces Takeover Offer

In a press release issued late yesterday, Ossen Innovation announced that its Board of Directors has received a preliminary non-binding proposal letter from Pujiang International Group.

OSN explained that Pujiang International Group is a Cayman Islands company that’s listed on the Hong Kong Stock Exchange. The company already owns about 65.9% of OSN.

The hope for Pujiang is that it will purchase all outstanding shares of Ossen Innovations. In the offer, Pujiang said that it is willing to pay $1.667 in cash per ordinary share or $5.000 in cash per ADS.

The company said that its Board will be forming a special committee consisting of independent directors specifically for the purpose of consideration of the proposal. Of course, the process will include the retention of independent advisors, including both legal and financial advisors.

This Is Great News

The offer provided to Ossen Innovations is great news for two reasons. First and foremost, the offer provides a strong premium over pre-offer pricing, suggesting that if the deal goes through, strong returns would be the result.

However, even if OSN does not agree to be acquired, this is great news. The offer shows that there is plenty of intrinsic value tied up in the stock. Moreover, acquisition offers get quite a bit of buzz. So, the news may bring new eyeballs to the stock that will act as long-term investors.

So, no matter what happens with the offer, OSN stock is one to watch closely.

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