Biosensors agrees to CITIC Private Equity buyout
The board of Singapore-listed medical devices manufacturer Biosensors International has accepted a buyout offer from CITIC Private Equity that values the company at approximately S$1.4 billion ($996 million).
The private equity firm already holds a 19.57% stake in Biosensors. It will pay S$0.84 per share for all shares it doesn't already own, according to a regulatory filing. An initial bid of S$0.815 per share was not endorsed by management and a second bid of S$0.825 was made before the final price was agreed. The deal still requires shareholder approval.
Several non-management co-investors are also identified in the filing, including Wealth Summit Ventures, Marine Trade Holdings, and Fu Mao Holdings. Bank of China is providing financing for the privatization.
Biosensors was founded in 1990 and listed on the Singapore Exchange in 2005. It specializes in cardiovascular and critical care products, as well as a range of peripheral devices. Most of its revenue comes from interventional cardiology, specifically drug-coated stents that are used in the treatment of weak arteries.
CITIC PE bought a 21.7% stake in Biosensors from Hong Kong-listed Shandong Weigao Group Medical Polymer for $312.28 million in November 2013. Biosensors is also an investee of Hony Capital. The private equity firm acquired a 29% stake for $134 million in 2010 and, as of June 2015, held an 11.83% interest.
Biosensors said in February 2014 that CITIC PE had held "very preliminary discussions" with external parties about potentially increasing its stake, amid reports that it was seeking to buy a controlling interest. The private equity firm subsequently abandoned plans for a takeover.
The company reported revenue of S$308.4 million for the 2015 financial year, down from S$323.8 million in 2014. It also swung from a net profit of S$40.6 million in 2014 to a loss of S$224.8 million, largely due to goodwill impairment losses in the interventional cardiology segment.
China-focused CITIC PE closed its second US dollar fund in May at about $1.3 billion.
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