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Le Gaga Holdings receives going-private offer

NEW YORK (AP) -- Chinese greenhouse vegetable producer Le Gaga Holdings Ltd. has received an offer to take the company private from a group that includes its chairman and CEO.

The group is offering $4.01 per share in cash for each American depositary share that it doesn't already own, which is a 20 percent premium to the Tuesday closing price of $3.34.

At the offer price, the total company would be valued at approximately $184.1 million.

Shares jumped 41 cents, or 12.3 percent, to $3.75 in premarket trading on Wednesday.

The company currently has about 45.9 million outstanding shares, according to FactSet.

Aside from Chairman Na Lai Chiu and CEO Shing Yung Ma, the group making the offer includes SC China Holding Ltd. — a company indirectly wholly owned by board member Neil Nanpeng Shen.

Le Gaga said that its board has created a special committee made up of three independent directors to evaluate the offer. The company said that it just received the proposal and that it hasn't made any decision yet as to how it will respond.

Le Gaga is expected to report its fiscal third-quarter financial results on Tuesday.