A consortium led by its Chairman Jinsheng Ren has offered to buyout Simcere Pharmaceutical Group. The China based pharmaceutical firm was priced at US$9.56 per American Depositary Share making the total value of the company at US$500 million. The price offered is inclusive of a 19% premium over market value for the share.
According to Simcere, it has formed a special committee to review the proposed buyout. The buyout consortium includes New Good Management, the firm controlled by Chairman Ren, and Assure Ahead Investments, which is owned by Chinese private equity firm Hony Capital. Currently, New Good Management owns 36% of outstanding shares of Simcere while Assure Ahead owns 17% as of April 2012. Ren, on his own, owns 38% of Simcere shares.
The stock value of the company has fallen 9% in the last year. The company makes drugs for cancer, as well as brain and heart disease for its patients.
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