Small-cap Chinese stocks faced intense scrutiny and fraud worries, severely suppressing share prices, with Yongye bottoming out in 2012.

The merger turned Yongye into a wholly-owned subsidiary of Full Alliance International Limited.

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A buyer consortium—including Yongye CEO Zishen Wu and Morgan Stanley Private Equity Asia—acquired the firm for $6.60 per share .

Following a challenging period in the US capital markets, Chinese crop nutrient developer officially completed its going-private merger on July 3, 2014. Why did this happen?

This transaction highlights the trend of U.S.-listed Chinese firms returning to private ownership to restructure and re-evaluate their capital access in a more challenging regulatory environment.

This move allowed the company to focus on its Inner Mongolia operations and growth strategy without the pressure of quarterly public reporting.

The transaction was heavily backed by $214 million in debt financing from the China Development Bank. Key Takeaways: