CITIC backs $330m MBO offer to take China’s 3SBio private


CITIC Capital is part of an investor group led by 3SBio chief executive Jing Lou that has tabled a $330m offer to take the China-based biotech company private.

The offer of up to $15 per American Depositary Share (ADS) represents a 29 per cent premium over Tuesday’s closing price of $11.59 per ADS.

3SBio produces drugs for the treatment of cancer, kidney diseases, inflammation and infectious diseases. It has five drugs on the market that are sold primarily in China.

CITIC will finance the take-private through its China-focused private equity vehicle CPEChinaFund, and is currently in talks with a financial institution that is interested in backing the deal, the firm and Lou said in a proposal letter to 3SBio.

The company’s board of directors said it has not made a decision regarding the proposal.

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