CEO of 3SBio offers $15 per share to go private
The CEO of Chinese biotechnology company 3SBio Inc. has proposed taking the company private for $15 per share, the company said on Wednesday.
The news sent 3SBio's American depositary shares up $1.86, or 16 percent, to $13.45 in midday trading. The proposed price represents a premium of 29 percent over Tuesday's closing price of $11.59.
With about 22.1 million U.S. shares outstanding, the offer would value the company at about $332 million.
The company said it received a preliminary, non-binding letter on Wednesday from Chairman and CEO Jing Lou and affiliated funds CPECChina Fund LP and a private equity fund associated with CITIC Private Equity Funds Management Co.
The letter says the deal would be financed through debt and equity. The buyers have been in discussions with a financial institution that is interested in financing the deal, according to the company's description of the letter.
The company's board said a committee of three independent directors will hire financial advisors and study the proposal.
The board cautioned that the proposal is preliminary and non-binding, and that no decisions have been made about the company's response to the proposal.
Its U.S. shares traded as high as $15.53 in late March. They traded as low as $9.26 in January. The company said it researches, develops, manufactures and markets biopharmaceutical products primarily in China.