(Corrects name of firm in paragraph 5 of Sept 12 story to CITIC
Private Equity Funds Management Co Ltd from CITIC Capital)
Sept 12 China-based biotechnology firm 3SBio Inc
SSRX.O said an investor group led by its chief executive Jing
Lou has offered to take the company private for up to $15 per
American Depositary Share (ADS), or about $331 million.
The offer, which was made by Lou and the China-focused
private equity fund CPEChinaFund LP, represents a 29 percent
premium over the $11.59 that the company's ADS closed at on
Each ADS represents seven ordinary shares of the company,
making the offer value for each ordinary share about $2.14. The
company had 154.5 million shares outstanding as of Dec. 31, 2011
according to a regulatory filing.
3SBio, which develops and manufactures drugs to treat
cancer, kidney diseases, inflammation and infectious diseases,
has five products on the market, sold primarily in China.
Lou and CPEChinaFund, an affiliate of Chinese private equity
firm CITIC Private Equity Funds Management Co Ltd, will finance
the deal through a combination of debt and equity.
They are currently in discussion with a financial
institution that is interested in financing the deal, Lou and
the private equity fund said in a proposal letter to the
3SBio's board said it has not made any decision regarding
The company's shares, which have risen about 13 percent this
year, w ere up about 16 percent at $13.43 in morning trade on
(Reporting by Esha Dey and Vrinda Manocha in Bangalore; Editing
by Supriya Kurane)
(Reporting by Saumyadeb Chakrabarty)