NEW YORK (AP) -- Chinese motor maker Harbin Electric Inc. has agreed to be taken private by its chairman and CEO and a private equity fund for $24 per share in cash, almost triple the stock value at the end of last week.
Its shares surged 67 percent in pre-market trading Monday.
Based on Harbin's 31.3 million outstanding shares as of May 9, the deal values the company at about $750 million.
Chairman and CEO Tianfu Yang is teaming up with Abax Global Capital to buy the shares of the company he does not already own. Together, Yang, affiliates of Abax and certain employees of the company own about 41 percent of Harbin's shares.
The purchase price is nearly three times Harbin's closing stock price of $8.39 on Friday. On Thursday, the stock plunged 51 percent before regaining some ground on Friday.
Shares of China-based Harbin rose $5.61, or 67 percent, to $14 in pre-market trading.
Yang said while "events that negatively affected the company's stock price over the past few months have left all shareholders unhappy and frustrated," he believes that the deal will return value "to all our shareholders who did not lose confidence in the company and its management."
The deal is expected to close in the fourth quarter.