CITIC consortium to take China’s 3SBio private for $340m

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pills2_lrgChinese biotechnology firm 3SBio has agreed to be taken private by an investor group led by chief executive Jing Lou and China state-backed CITIC Capital for about $340m.

The offer of up to $15.40 per American Depositary Share (ADS) represents a 33 per cent premium to its trading levels prior to when the group first tabled a $15 per ADS bid for the stock in September.

The consortium owns about 18 per cent of 3SBio’s total issued and outstanding share capital, the company said in a statement.

The consortium plans to fund the deal with a combination of debt, equity and cash.

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 deal through its China-focused private equity vehicle CPEChinaFund.

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