China Biologic Goes Private at $120 Per Share

The plasma-based biopharma company remains controlled by its chairman, Joseph Chow.
CapitalWatch StaffApr 21,2021,09:43

China Biologic Products Holdings, Inc. (Nasdaq: CBPO) announced on Tuesday the completion of its going-private deal and was suspended from trading on the Nasdaq Global Select Market.

The definitive agreement on the merger was first announced in November and approved by the company’s shareholders on March 1. Under the deal, each ordinary share was valued at $120, giving the company equity value of about $4.8 billion.

Upon the privatization, top stakeholders in the Beijing plasma-based biopharmaceutical company will include Centurium Capital, Marc Chan, Hillhouse Capital, CITIC Capital, Temasek Holdings, and Joseph Chow, the chief executive and chairman of China Biologic.

Over the past 52 weeks, CBPO stock dipped as low as $99.74 per share and hit the ceiling of $120.05 per share.

For 2020, China Biologic reported a 4% in sales increase to $524.4 million, and net income growth of 10% to $152.3 million, or $3.82 per share.

The privatization is the latest in a slew of going-private deals by Chinese companies trading in New York. A month ago, China’s internet giant Sina discontinued its public trading after 21 years on Nasdaq. Sina was taken private by New Wave Holdings Ltd., an entity controlled by Sina’s chairman Charles Chao, at market value of $43.30 per share, or $2.6 billion.

At the time, Chao said, “The privatization of Sina is not the end of an era, but we use a new structure to better develop our future.”

Sina’s social platform Weibo (Nasdaq: WB) remains listed in New York.

Topics:CBPO, Sina, Weibo