Yingde Gases has issued a response to Air Products’ public rebuttal of the Chinese company’s previous disclosures in ongoing takeover discussions.

The war of words between the parties has escalated after Yingde’s Board of Directors issued a similar open letter back to the Tier One player stating that it was not “supportive of any attempt to rush the company’s shareholders into a transaction which would see a sale of the company ‘on the cheap’.”

Yingde also claimed Air Products was “missing an opportunity to potentially execute a transaction swiftly.”

“We have a clear duty to our shareholders to ensure that they are not rushed into selling the company ‘on the cheap.’ Your unreasonable position on our logical request speaks volumes to us,” the letter continued.

“We believe we have shared with you meaningful oral information regarding our business performance and current operating situation, and we believe this represents important due diligence which you have already used to build confidence in making a public bid for Yingde.”

Yingde has formed an Independent Committee of the Board of Directors (IBC) in the wake of the Standstill Agreement between the companies, which Yingde claims will guard against Air Products potentially purchasing a block of the company’s low-priced shares and deterring other outside acquisition bids.


Air Products’ initial open letter, published on 14th February, expressed the company’s surprise at previous statements that Yingde and its Chairman, Executive Director and substantial company shareholder Xiangti Zhao made in several recent Public Disclosures.

In the letter, signed by CEO Seifi Ghasemi, Air Products claimed that Yingde’s releases regarding the progress of the acquisition’s due diligence process do not “accurately characterise the nature of what has happened.”

The Chinese outfit estimates that preliminary conclusions will be decided in a matter of weeks at its extraordinary general meeting on 8th March.

Letter in full

Yingde’s full letter can be found here: http://www.yingdegas.com/attachment/2017021520170100002726678_en.pdf