WuXi PharmaTech To Go Private in $3.3 Bn BuyoutBy
WuXi PharmaTech (Cayman) Inc., a contract research organization, has formed an agreement with a newly formed parent company, New WuXi Life Science Limited and WuXi Merger Limited, a wholly owned subsidiary of the new parent company, for a $3.3 billion management buyout of the company that would take WuXi PharmTech private and delist it from the New York Stock Exchange.
WuXi has reached a deal with a group that includes Ge Li, its chairman and chief executive, other senior executives, and investors to sell WuXi PharmaTech for $5.75 per ordinary share of the company and $46 per American depositary share. Under the deal, the company would go private and be held by a consortium of investors that would include: Ally Bridge Group Capital Partners, Boyu Capital, Temasek Life Sciences Private Limited, Ping An Insurance, and Hillhouse Fund II, L.P as well as Mr. Li, and other executives. These executives include: Xiaozhong Liu, executive vice president and director; Zhaohui Zhang, senior vice president of operations, the head of domestic marketing, and director; and Ning Zhao, a senior vice president of operations, head of corporate human resources and a director.
The company’s board of directors, acting upon the recommendation of a special committee formed by the board of directors, unanimously approved the deal and is recommending that the company’s shareholders authorize and approve the deal, which is expected to close during the fourth quarter of 2015, subject to shareholder approval as well as certain other customary closing conditions.
Source: WuXi PharmaTech