Ally Bridge Group, a Hong Kong-based healthcare-focused private equity firm, has proposed a HK$2.34 billion (US$301 million) privatization deal to take Hong Kong-listed Shangdong Luoxin Pharmaceutical Group Stock Co., Ltd. private.
Giant Star BVI, a vehicle established by Luoxin’s managers, and GL Capital Group will also join the transaction.
Ally Bridge group plans to pay HK$17 (US$2.46) per share, which is around 25% premium compared to the stock’s last closing price before the announcement, to acquire 32.96% of the company’s 137 million shares. Giant Star, on behalf of itself and GL Capital, will buy the 67.04% remaining stake by cash and credit facility.
Luoxin was established in 1988 first as a small pharmacy store, and was restructured and renamed as Luoxin in 2001. It currently engages in pharmaceutical research and development, manufacture, sales, and hospital service. The company has been listed on the Hong Kong Exchange since 2005.
Ally Bridge previously invested in two European biopharmaceutical companies including Swiss Galenica AG, as well as Austria and U.S.-based Nabriva last month, following a US$150 million investment in NASDAQ-listed anti-body biopharmaceutical company Sorrento Therapeutics, Inc. last April. It also backed WuXi PharmaTech’s US$3.3 billion go-private deal in 2015.