Yunfeng backs take-private of China-US biotech player
Yunfeng Capital, a private equity firm co-founded by Jack Ma, is backing the privatization of Cellular Biomedicine, a US and China-based biotech developer.
Yunfeng is joining a consortium including life sciences specialists Casdin Capital and TF Capital, as well as Velvet Investment, an entity associated with GIC Private, and Wealth Map, an entity controlled by Hong Kong's Sailing Capital.
The consortium is offering $19.75 per share for the NASDAQ-listed company. The stock jumped 36% following confirmation of the offer to $19.42 and closed on August 12 at $19.27 giving the company a market capitalization of around $374 million.
Dangdai Science & Technology was the largest institutional shareholder with an 11.7% stake as of June, followed by Sailing at 8.8%. Sailing invested $30.6 million in Cellular in 2018.
Hillhouse Capital, which holds a 1.2% interest in Cellular, withdrew from the consortium prior to the current offer. Other minor shareholders not participating in the consortium include Blackrock and Ark Investment Management.
"As a private company, we will have access to the resources and long-term commitment needed to better pursue new capital investment in existing assets and targeted acquisition opportunities as our sector continues to evolve, including further geographic and product diversification," Tony Liu, CEO of Cellular and a participant in the acquiring consortium, said in a filing.
Cellular develops immunotherapy drugs for various cancers and stem cell-based therapies for degenerative diseases including osteoarthritis and tissue damage. The company's primary research and manufacturing facilities are in China, and it has progressed trials for at least three products in the country so far this year. Its Shanghai facility includes a joint cell therapy laboratory with GE Healthcare and a joint cell therapy innovation and application center with Thermo Fisher Scientific.
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