Sinovac receives alternative takeover offer

China-based Sinovac Biotech (Nasdaq: SVA), which earlier this week revealed a takeover approach from SAIF Partners, today announced that it has received an alternative offer to acquire the company.

Sinovac’s board of directs on February 4, received a preliminary non-binding proposal letter, dated February 3, 2016, from a consortium comprised of PKU V-Ming (Shanghai) Investment Holdings, Shandong Sinobioway Biomedicine, CICC Qianhai Development (Shenzhen) Fund Management, Beijing Sinobioway Group, Heng Feng Investments (International) Limited and Fuerde Global Investment Limited, to acquire all of the outstanding common shares of the company for $7.00 in cash per common share. This compares with the previous offer of $6.18 per share, news of which pushed Sinovac’s stock price up 18% to $5.94. The stock rose a further 6.38% to $6.17 in pre-market trading on the Nasdaq this morning.

Sinovac’s special committee of independent directors, which was formed to consider the preliminary non-binding proposal letter, dated January 30, 2016, from Weidong Yin, chairman, president and chief executive of the company, and SAIF Partners and/or its affiliates will carefully consider and evaluate both proposals with the assistance of the special committee's independent financial and legal advisors to be appointed in due course.