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CITIC-backed consortium sweetens deal for China 3SBio take-private

  • Andrew Woodman
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A consortium backed by CITIC Private Equity has raised its offer for the Chinese biotechnology company 3SBio to around $370 million.

According to a release, the group raised its offer to $16.70 per American Depositary Share from $15.40. The revised offer represents a premium of 10% to the ADSs' closing price on April 19, the last day of trading prior to 3sBio's announcement that it had received a revised take-private proposal from the consortium.

The consortium made its original offer of $15 per ADS in September. The 3SBio board approved the consortium's offer in February. Under the offer CITIC PE agreed to provide the equity with CITIC Bank International serving as lead arranger for the debt financing, and other consortium members committing rollover equity. The consortium currently owns about 18.1% of the company.

The news comes a week after one of 3SBio's top shareholders, OrbiMed Capital, said that it believed the consortium's offer of $15.40 in cash for all outstanding American Depository Shares (ADS) - a 32.9% on the last trading day prior to the offer being submitted - undervalued the company.

3SBio also said it was postponing its extraordinary general meeting, scheduled for April 25, to provide sufficient time for shareholders to vote on the amended merger.

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