3SBio shareholder opposes CITIC PE-backed take-private

OrbiMed Capital, which owns 9.44% of 3SBio, said in a regulatory filing that it believes the consortium's offer of $15.40 in cash for all outstanding American Depository Shares (ADS) - a 32.9% premium to the September 11 closing price, the last trading day prior to the offer being submitted - undervalues the company.

The US-based life sciences investor, which has approximately $7 billion in assets under management, including one Asia-focused fund, noted that a third party has expressed interest in buying the company at $18-20 per share. It argues that selling 3SBio to an unaffiliated third party would likely generate better value.

In February, the 3SBio board approved the PE-backed consortium's offer, which would see CITIC PE agreed to provide the equity, CITIC Bank International serve as lead arranger for the debt financing, and other consortium members commit rollover equity. The initial bid was $15 per share.

The consortium currently owns about 18.1% of the company.

The deal is subject to shareholder approval at an extraordinary general meeting scheduled for April 25, where two thirds of participating shareholders must vote in support of the privatization if it is to proceed.

3SBio develops and manufactures a range of drugs used to treat cancer, kidney disease, inflammation and infectious diseases. Its products are primarily sold in China. The company's headquarters and manufacturing facilities are based in Shenyang. It posted a net income of RMB108.6 million ($17.2 million) in 2011 off revenues of RMB541.6 million. This compares to income of RMB81.3 million in 2010.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Buyouts
• Greater China
• Healthcare
• buyout
• China
• healthcare
• Citic Private Equity