BioCentury
ARTICLE | Company News

Simcere to go private

August 29, 2013 12:33 AM UTC

Simcere Pharmaceutical Group (NYSE:SCR) said it is going private in a deal in which Chairman Jinsheng Ren and Assure Ahead Investments Ltd. will acquire all of the Simcere shares they do not already own for $4.83 per share in cash or $9.66 per ADS. Ren and Assure own a 55.5% stake in Simcere, or about 62 million shares. The deal values Simcere at about $539.4 million based on about 111.7 million shares outstanding on Aug. 28. The price is a 21% premium to Simcere's close of $7.96 on March 8, before Simcere disclosed that Jinsheng Ren and Assure made a non-binding proposal to acquire the company for $4.78 per share or $9.56 per ADS. The deal is subject to shareholder approval but has been approved by Simcere's board and is expected to close by year end (see BioCentury Extra, March 11).

Simcere develops and markets pharmaceuticals in China, including Endure recombinant human endostatin to treat non-small cell lung cancer (NSCLC). The Chinese company raised $181.3 million in 2007 in an IPO that valued it at $906.3 million. ...