Tongjitang, Fosun Industrial Co. Ltd., Hanmax, Tonsun deal

Hanmax, a company controlled by Tongjitang Chairman and CEO Xiaochun Wang, Fosun and Tonsun, a Cayman Islands exempted company owned by Hanmax and Fosun, will acquire all outstanding shares of Tongjitang for $1.125 per share or $4.50 per ADS. The price is a 13.9% premium to Tongjitang's close of $3.95 on Oct. 29, the last trading day before the deal was announced, and values Tongjitang at $117 million based on 104 million shares outstanding at Oct. 29. Tongjitang's board approved the merger agreement, which is expected to close before the end of 1Q11. ...