Pou Chen Corp. has cancelled a plan to take Pou Sheng International private in a deal that values the Chinese distribution and retail company at $1.4 billion due to opposition by its shareholders. Under the original plan, Pou Chen's subsidiary, Yue Yuen Industrial (Holdings), would have sold its 62 percent stake in Pou Sheng as part of the process; in exchange for a special dividend. One reason for the opposition was probably the fact that the price offered for Pou Sheng's shares was nearly one-third lower than the original price of its initial public offering in 2008. In the first quarter of this year, Pou Sheng's sales grew by 29.5 percent to $875.8 million, helping Yue Yuen to post a 9.0 percent increase to $2.29 billion for the period.

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