China Biologic Products Holdings reports that CITIC Capital MB Investment Limited has withdrawn its non-binding takeover proposal date June 11 which appeared to be inadequate in CBPO’s opinion.
The board rejected the non-binding takeover proposal dated August 17 from an investor group led by former Chairman & CEO David Gao saying the bid undervalued the company.
And finally, CBPO has inked agreements with certain institutional investors for the direct sale of 5.85M newly issued shares expected to yield gross proceeds of ~$590M ($100.85/share). The new capital will be used to support its expansion plans and acquisitions.
Shares are down 11% premarket on light volume.
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Previously: China Biologic Products up 16% premarket on $110/share offer (June 18)
Previously: China Biologic up 18% premarket on $118/share bid (Aug. 20)
Update: In a statement, the Gao-led investment group says it is “deeply disappointed” that CBPO’s board rejected its proposal before the private placement of stock at a price well below its bid, adding that it is “evaluating all our options, including legal action.”
Date: August 27, 2018
Source: Seeking Alpha
