Puda Coal Independent Committee Retains Financial Advisors In Connection with Preliminary Buy-Out Proposal from Chairman

TAIYUAN, China, June 13, 2011 /PRNewswire-Asia-FirstCall/ -- Puda Coal, Inc. (NYSEAMEX: PUDA) ("Puda Coal" or the "Company) announced today that its Independent Committee has retained Cowen and Company, LLC and Morgan Joseph TriArtisan LLC as financial advisors in connection with the previously-announced proposed preliminary buy-out offer made by Ming Zhao, the Chairman of Puda Coal, to acquire all outstanding shares of common stock of the Company. In response to the offer, the Board of Directors of the Company authorized the Independent Committee to review and evaluate the proposal and, if appropriate, negotiate its terms, and take any other action in connection therewith.

In a series of conference calls and e-mail communications over the past several weeks with lawyers from Shearman & Sterling, Mr. Zhao's legal counsel, the Independent Committee has requested a draft Merger Agreement and information and documentation from Mr. Zhao, including documentation relating to all Mr. Zhao's transactions involving Puda Coal and its subsidiaries, that will enable the Independent Committee to evaluate Mr. Zhao's preliminary proposal. Since the proposal was announced, lawyers from Shearman & Sterling have indicated to representatives of the Independent Committee that they were working to provide this information to the Independent Committee, although, to date, this information has not yet been provided. Last week, lawyers from Shearman & Sterling indicated to representatives of the Independent Committee that they hope to provide substantial additional information by June 22nd, but have not yet indicated a date by which they propose to deliver a first draft of the Merger Agreement. The Independent Committee will continue to communicate with Shearman & Sterling regarding the proposed transaction. Neither the Company nor the Independent Committee can provide any assurances that a transaction will be formally proposed, or that if proposed, a definitive agreement will be executed or approved or that a transaction will be consummated.  

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Company Contact:
Investor Relations Contact:
Crocker Coulson, President
CCG Investor Relations
Tel:   +1-646-213-1915
Email: [email protected]

Elaine Ketchmere, Partner
Tel:   +1-310-954-1345
Email: [email protected]

SOURCE Puda Coal, Inc.

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