M&A news: Tongjitang gets takeover offer from Hanmax; Abbott's takeover of Facet cleared under US act

China's Tongjitang Chinese Medicines Company, a specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, says that it received a letter dated April 8, proposing to acquire all of the outstanding ordinary shares of the company, including ordinary shares outstanding in the form of American Depositary Shares, in a transaction under Cayman Islands law that would result in the company becoming a privately-held firm.

The proposal is from Hanmax Investment, a company controlled by Xiaochun Wang, chairman of Tongitang's board of directors and chief executive officer of the company, and Fosun Industrial, a company incorporated in Hong Kong. The transaction is intended to be structured as a merger of the company with a new joint venture incorporated in the Cayman Islands and owned solely by the Bidding Parties. The Bidding Parties propose to pay $1.125 in cash, without interest, for each outstanding share (or $4.50 per ADS), excluding ordinary shares and ordinary shares represented by ADSs that are owned by the Bidding Parties. The proposal is subject to, among other things, negotiation of a definitive merger agreement and the availability of financing. The board members, except Mr Xiaochun Wang, are reviewing the proposal.

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