China Biologic Products has received a US$3.9 billion all-cash offer from a consortium of investment firms, valuing the Beijing-based firm at slightly above an earlier buyout proposal from a CITIC Capital unit, Reuters reports.
The consortium, led by China Biologic’s former CEO David Gao, has offered to pay US$118 per share, 28.3 percent above China Biologic’s Friday close, according to the report.
The offer is also US$8 more than a proposal from CITIC’s unit.
CCRE Holdings, a wholly-owned unit if CITIC, had in June made a cash offer to buy China Biologic shares for US$110 apiece, valuing it at US$3.65 billion.
Members of the Gao-led consortium include GL Capital Group, Bank of China Group Investment Ltd and CDH Investments.
Gao owns a 1.3 percent stake in China Biologic, which is involved in production and sales of plasma products such as human immunoglobulin to prevent diseases such as measles and hepatitis.
He was the company’s chairman and chief executive until July 2018.
CITIC has a 5 percent stake in China Biologic.
Their offers have put China Biologic, which was founded in 2002, at the center of a bidding war involving two state-backed buyers, Reuters noted.
China Biologic’s board, chaired by former Warburg Pincus Asia Pacific head David Li after Gao’s departure, has not responded to either offer.
The Gao-led consortium has asked the board to respond by August 27. CCRE has not made any statement since its June offer.
The consortium plans to fund the deal with debt and equity capital, according to the report.
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