Wuxi PharmaTech To Be Taken Private By CEO-led Group In $3.3 Bln Deal

(RTTNews) - Chinese drug-research contractor WuXi PharmaTech (Cayman), Inc. (WX) agreed Friday to be taken private by a consortium led by its Founder, Chairman and CEO Ge Li and, Ally Bridge Group Capital Partners in a deal valued at $3.3 billion.

The deal, expected to close during the fourth quarter of 2015 is unanimously approved by WuXi PharmaTech's board of directors and resolved to recommend that shareholders authorize and approve it.

The deal will see WuXi PharmaTech shareholders receiving a cash consideration equal to $5.75 per ordinary share of the company and $46 per American Depositary Share of the company, each representing eight shares.

The offer price represents a 16.5 percent premium over WuXi PharmaTech's closing price of $39.50 per ADS on April 29, the last trading day prior to the receipt of a initial non-binding "going private" proposal from the consortium.

Following the closure of the deal, the company will be beneficially owned by a consortium led by its CEO Ge Li and executive officers of the company who have elected to roll-over their interest in the company in connection with the deal.

The consortium is also comprised of private-equity investors Ally Bridge Group Capital Partners and Boyu Capital as well as Singaporean state-investment company Temasek Life Sciences Pvt. Ltd., Ping An Insurance (Group) Co. of China and Chinese fund manager Hillhouse Capital.

Following the completion of the deal, WuXi PharmaTech will continue as the surviving corporation and the wholly owned subsidiary of parent company, New WuXi Life Science Ltd.

The closure of the deal is primarily subject to an affirmative vote of holders of a majority of the shares that are unaffiliated with New WuXi Life Science and the buyer consortium at a meeting of WuXi PharmaTech's shareholders.

If completed, the deal will result in WuXi PharmaTech becoming a privately-held company and its ADSs will no longer be listed on the NYSE.

The deal will be financed through cash contributions from the buyer consortium and proceeds from committed and underwritten loan facilities contemplated by debt commitment letters, each dated August 14, 2015.

Shanghai Pudong Development Bank Co. Ltd. and Ping An Bank Co. Ltd. have agreed as underwriters and mandated lead arrangers, to underwrite and arrange an aggregate of $1.1 billion in debt financing for the deal, subject to certain conditions.

Shanghai, China-based WuXi PharmaTech is a leading open-access R&D capability and technology platform company serving the pharmaceutical, biotechnology, and medical device industries with operations in China and the U.S.

WX closed Thursday's regular trading session at $41.32, up $0.61 on a volume of 1.31 million shares. In the past 52-week period, the stock has been trading in a range of $32.40 to $46.14.