NEW YORK--(BUSINESS WIRE)--Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Shengtai Pharmaceutical, Inc. (“Shengtai” or the “Company”) (OTC BULLETIN BOARD: SGTI) (ISIN: US8232142005) concerning the proposed acquisition of Shengtai by its Chairman and CEO Qingtai Liu (a 40.5% shareholder), in a cash transaction valued at approximately $68 million.
The investigation concerns whether the Shengtai directors are breaching their fiduciary duties by failing to adequately shop the Company and maximize shareholder value. Under the terms of the agreement, Shengtai shareholders would receive $1.65 in cash per share of Shengtai common stock. However, the price to EBITDA, EBIT, Revenue, Total Assets and Book Value multiples are below that of comparable deals. Additionally, the stock has traded above the offer price within the past six months.
Shengtai shareholders seeking more information about this acquisition are advised to contact Rebecca Jarmon at rjarmon@pomlaw.com or 212-661-1100 or 888-476-6529, ext. 314.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.