Akin Gump Advises CITIC PE in Buyout Bid for Chinese Biotech Firm 3SBio in Going-Private Deal
(Hong Kong) - Akin Gump Straus Hauer & Feld LLP is advising a unit of China’s CITIC Private Equity Funds Management Co. (CITIC PE) in its buyout bid for Chinese biotech firm 3SBio Inc. CITIC PE formed a consortium group with the management team of 3SBio Inc. in connection with the buyout.
The deal would value the company at $331 million and take it private.
3SBio is based in Shenyang, China, and focuses on R&D, manufacturing and marketing biopharmaceutical products, primarily in China, related to nephrology, oncology and infection diseases, among others.
To implement the buyout, Decade Sunshine Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands and wholly owned by the consortium group, will merge its wholly owned subsidiary Decade Sunshine Merger Sub, an exempted company with limited liability incorporated under the laws of the Cayman Islands, into 3SBio Inc. Decade Sunshine will own 100 percent of 3SBio Inc. after the merger, which will be financed through a combination of debt, equity and cash.
China CITIC Bank International Limited has agreed to provide debt financing for the transaction. CITIC PE has provided equity commitment.
Gregory Puff, corporate partner and head of Akin Gump’s Hong Kong office and Asia practice, is leading the legal team advising the special committee.
The merger/buyout is expected to complete in the second quarter of 2013.