BRIEF—China Biologic Products gets takeover offer

Shares of plasma-based company China Biologic Products Holdings leapt 10.5% to $113.99 yesterday after it revealed receipt of a preliminary non-binding proposal letter, dated September 18, 2019, from a consortium of six buyers, including Beachhead Holdings Limited and CITIC Capital China Partners, proposing to acquire all of the outstanding ordinary shares of the company not already owned by the Buyer Group for $120 per share in cash in a "going private" transaction.

The offer price is a 16.3% premium to China Biologic’s close of $103.10 on Wednesday and translates to a $4.6 billion offer in total.

In connection with the submission of the proposal letter by the Buyer Group and the Transaction, the board has determined that each member of the Buyer Group will be an "exempt person" under the company's currently effective preferred shares rights agreement.

The board cautions the company's shareholders and others considering trading in its securities that no decisions have been made with respect to the company's response to the transaction.

There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

The company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.