3SBio receives $331m buyout offer

Jing Lou, the CEO of Chinese pharmaceutical company 3SBio (SSRX.NASDAQ.FRA) and Chinese private equity fund CPEChinaFund (CPE), has offered to buy out 3SBio’s existing shareholders for roughly US$331 million and take the company private, Reuters reported. Lou and CPE, an affiliate of Chinese investment firm CITIC Capital, offered US$15 per American Depositary Share, a premium of 29% over the Tuesday closing price of US$11.59. The value of the company’s shares has risen 13% this year, with a 15% hike this morning, bringing the price up to US$13.43. The finance structure will comprise debt and equity. Lou and the private equity fund are currently in discussions with an entity that may invest in the transaction, according to a CPE proposal letter to the company. No deal has yet been struck, said 3SBio’s board.