China Biologic Products Holdings Inc. received a takeover offer from CCRE Holdings Ltd., a unit of Chinese investment company CITIC Capital Holdings Ltd.
In the preliminary, nonbinding letter, CCRE proposed to acquire all of the outstanding share capital of China Biologic that CCRE does not already own for US$110 per ordinary share in cash — a 30.6% premium to the company's stock volume-weighted average price during the past 30 trading days. The deal values China Biologic at US$3.65 billion.
CCRE intends to finance the acquisition with a combination of debt and equity. The transaction is subject to conditions, including due diligence and execution of definitive agreements.
Between May 21 and June 8, CCRE had purchased 1,680,863 ordinary shares for about US$145.1 million in the open market. The shares represent 5.1% of China Biologic Products.
Upon deal completion, China Biologic would delist its shares from the Nasdaq Global Select Market.
China Biologic Products Holdings is a plasma-based biopharmaceutical company organized under the laws of the Cayman Islands.