BRIEF—China Biologic rejects bid from consortium led by former CEO

China Biologic Products Holdings says its board of directors has rejected a $3.9 billion takeover approach by a consortium of investors led by its former chief executive David Gao.

It also said it has received a letter dated August 23, 2018 from CITIC Capital MB Investment, an affiliate of CITIC Capital Holdings Limited, withdrawing its preliminary non-binding proposal dated June 11, 2018, with immediate effect.

After careful review of the consortium's proposal, the Board has unanimously determined that it is not in the best interests of the company and its shareholders as it did not reflect the intrinsic value of the company and would abrogate the shareholders' opportunity to enjoy the long-term return from the company's execution of its business strategy of growing into a leading global biopharmaceutical company.

In addition, China Biologic announced that it has entered into definitive agreements for the issuance and sale of an aggregate of 5,850,000 ordinary shares of the company, which represents 14.9% of the enlarged share capital post the issuance and is expected to raise gross proceeds of approximately $590 million.