SORL Auto Parts Inc (NASDAQ: SORL) was one of the big gainers in Friday’s trading session. The stock gapped up to close the day with gains of 30.38%. This followed news that the company had agreed to a buyout deal at a price of $4.72 a share.
Some members of the consortium that is buying out the company already hold about 59% of SORL stock. In announcing the deal, the company stated that its board was in a unanimous agreement of the merger. It also announced the deal was expected to close in Q2 of 2020.
The deal comes just over a week after the company announced strong Q3 results. In the results that were released on the 14th of November, the company stated that its net sales for the quarter were up by 3.4% to hit $112.2 million. The company also noted that sales from the Chinese aftermarket were up by 25.3% compared to a similar quarter last year. Chinese sales increased from $36.4 million in Q3 of 2018 to $45.6 million in Q3 of 2019. The company’s earnings per share stood at an EPS of $0.22 up from a loss of $0.29 in Q3 of 2018. The company attributed the 2018 EPS loss due to changes in the U.S tax regime.
Looking at the charts, SORL Auto Parts Inc was trading in a range. It is news of the buyout that saw the stock gap up in a breakout move that was triggered by the merger deal. Volumes were high too and stood at 3.37 million in the day.
About SORL Auto Parts Inc
SORL Auto Parts Inc is a manufacturer and distributor of auto brake systems and related safety parts. The company has two segments namely: Commercial vehicles brake systems and that of passenger vehicle brake systems. The company has its headquarters in Rui’an China.