China’s Simcere Pharmaceutical Group has received a take-private offer from a consortium including investment firms New Good Management and Assure Ahead Investments.
NYSE-listed Simcere specialises in the development, manufacturing, and marketing of branded and proprietary pharmaceuticals in China.
The consortium, led by Simcere chairman Jinsheng Ren, has offered to acquire all of the outstanding ordinary shares of the company for $9.56 per American Depositary Share (ADS) or $4.78 per ordinary shares in cash.
The consortium has said it will form a transaction vehicle for the proposed transaction, which is intended to be financed with a combination of debt and equity capital.
Simcere has formed a special committee of independent directors consisting of Alan Au and Guoqiang Lin to consider the proposed transaction, it said.
According to Reuters, New Good Management – which is led by Ren – owned approximately 36 per cent of the company’s outstanding shares as of April 2012, while Assure Ahead Investments held 17 per cent and Ren himself 38 per cent.
Copyright © 2013 AltAssets