China Biologic may be too rich for CITIC’s blood

PW Medtech

19/06/2018 08:56

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
    By Pete Sweeney
    HONG KONG, June 19 (Reuters Breakingviews) - The plasma
products maker received a $3.7 bln takeover bid from the
Beijing-based bank’s buyout arm. CITIC offered a healthy 34 pct
premium. It could capitalize on a market shakeout, but it’s hard
to be sanguine about infusing a company with debt amid risky
regulatory upheaval.
       
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    CONTEXT NEWS
    - A wholly owned subsidiary of CITIC Capital Holdings said
it had submitted a preliminary, non-binding proposal to acquire
the rest of China Biologic Products Holdings for $110 a share,
valuing the company at about $3.7 billion, according to
documents filed with the U.S. Securities and Exchange Commission
on June 18.
    - The all-cash offer represents a 34 percent premium to
China Biologic’s undisturbed share price, but is slightly lower
than the 52-week high of $114 hit in July 2017. CITIC Capital
said it welcomed management to participate in the transaction.
    - CITIC Capital already owns about 5 percent of China
Biologic, a major provider of blood plasma products in China. 
    -  For previous columns by the author, Reuters customers can
click on  SWEENEY/ 
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CITIC Capital filing    https://www.sec.gov/Archives/edgar/data/1369868/000114420418034488/0001144204-18-034488-index.htm
BREAKINGVIEWS - China's medical reform is pain for foreign
pharma     urn:newsml:reuters.com:*:nL1N1NL0SW
CITIC Capital offers to buy China Biologic for $110 per share   
 urn:newsml:reuters.com:*:nL4N1TK36Z
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
 ((pete.sweeney@thomsonreuters.com; Reuters Messaging:
pete.sweeney.thomsonreuters.com@reuters.net))