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news.Shanghai-based WuXi PharmaTech has entered into a merger agreement with New WuXi Life Science and its wholly owned subsidiary WuXi Merger, worth a total cash consideration of $3.3bn.
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Under the agreement, New WuXi Life will acquire WuXi PharmaTech for cash consideration equal to $5.75 per ordinary share and $46 per American depositary share (ADS).
Each ADS of WuXi PharmaTech represents eight shares and a 16.5% premium over the closing price of $39.50 per ADS as quoted by the New York Stock Exchange on 29 April.
The merger, which is subject to shareholder approval and other customary closing conditions, is expected to be completed in the fourth quarter of 2015.
The WuXi buyout group includes private-equity investors Ally Bridge Group and Boyu Capital as well as arms of Ping An Insurance (Group) Co. of China and Singaporean state-investment company Temasek Holdings.
After the amalgamation, WuXi Life Science will be owned by a consortium, which includes affiliates or funds managed or advised by Ally Bridge Group.
The completion of the merger process will see WuXi becoming a privately-held company and ADSs will no longer be listed on the NYSE.
With operations in China and the US, WuXi PharmaTech is an open-access R&D capability and technology platform company that provides services to the pharmaceutical, biotechnology and medical device industries.
Image: New WuXi Life Science will acquire WuXi for cash consideration equal to $5.75 per ordinary share and $46 per ADS. Photo: courtesy of stockimages/ freedigitalphotos.net.