NEW YORK, June 28, 2017 /PRNewswire/ -- On the evening of June 26, 2017 Beijing time, Sinovac Biotech Ltd. (Nasdaq: SVA, "Sinovac") announced that Sinovac entered into a Definitive Agreement ("Amalgamation Agreement") for Going-Private Transaction with Weidong Yin's consortium ("Consortium A") which is led by Weidong Yin and SAIF (Mr. Weidong Yin is the chairman, president and chief executive officer of Sinovac). Sinovac's Special Committee ("Special Committee") unanimously approved the Amalgamation Agreement and the transactions contemplated by the Amalgamation Agreement. Pursuant to the Amalgamation Agreement, Weidong Yin's Consortium will acquire the Company for cash consideration equal to US$7.00 per common share of the Sinovac.
Just over 24 hours after the announcement above, Sinobioway Consortium ("Consortium B") rapidly submitted to Sinovac's Board of Director and the Special Committee a "Restate Offer" and raised the consideration for privatized acquisition to $8 per share, which is 14.3% higher than the consideration offered in the "Amalgamation Agreement."
Consortium B was formed by Shandong Sinobioway Biomedicine Co., Ltd, CICC Qianhai Development (Shenzhen) Fund Management Co., Ltd, CITIC M&A Fund Management Co., Ltd., and some other famous institution. On February 3, 2016, Consortium B submitted an offer to the Special Committee with an initial consideration for $7 per share, which was 13.3% higher than consideration offered by the Consortium A at that time.
According to information from the Consortium B, the Special Committee did not give them the opportunity to raise their consideration. The Special Committee cooperated with the Consortium A, set the acquisition plan and the purchase price which is at an extremely low level.
Consortium B is concerned that the special committee did not fully select the acquisition method or choose the highest purchase price. It even did not give Consortium B or other potential acquirer the opportunities to raise the price. The members of Special Committee have become tools to help Consortium A erode the interests of minority shareholders.
To fight against this, Consortium B offers $8 in cash per Sinovac share and vows to win this transaction. How will Sinovac's going-private transaction go? We will wait and see.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/to-fight-against-the-behavior-between-sinovacs-special-committee-and-weidong-yins-consortium-and-their-low-price-sinobioway-consortium-raises-its-purchase-price-to-8-per-share-300481381.html
SOURCE Shandong Sinobioway Biomedicine Co., Ltd