ShangPharma chairman, chief executive officer and founder Michael Xin Hui and TPG Star Charisma have sent a non-binding proposal to ShangPharma’s Board of Directors to acquire all of the outstanding shares of the company not currently owned by founder or TPG.
The transaction will be done for a value between $8.50 and $9.50 per American Depositary Share (ADS), each ADS representing 18 ordinary shares of the company, in cash, subject to certain conditions.
The founder and TPG currently own approximately 54% and 11% of ShangPharma’s ordinary shares, respectively.
As per the proposal letter, the acquisition is expected to be financed through a combination of debt and equity capital, with definitive commitments for the required debt and equity funding likely to be in place.
ShangPharma’s Board of Directors has formed a special committee of independent directors consisting of three independent directors to consider this proposal.