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Could Ping An spark a bidding war for CBP?
Posted on Tuesday, 10 July 2018 10:40
Ping An Insurance is considering derailing Citic Capital’s USD 3.65 billion offer for Nasdaq-listed China Biologic (CBP) by trumping the buyout group’s USD 110.00 per share unsolicited bid, sources with knowledge of the matter told Bloomberg.
The Cayman Islands-incorporated, plasma-based biopharmaceutical products developer operates in China, the second-largest plasma treatment market in the world, after the US, through majority-held Shandong Taibang and wholly-owned Guizhou Taibang.
However, it also has a minority stake in Xi’an-based blood collection station manager Huitian and, at the beginning of the year, bought 80.0 per cent of regenerative medical biomaterial device maker TianXinFu.
CBP, which has a portfolio comprising human albumin and immunoglobulin products approved for intravenous injection (IVIG), is billed as one of the top five plasma-based products producers in terms of 2017 sales.
Within the albumin segment in China, the group is the second-largest domestic manufacturer with a 5.8 per cent market share, and is second within the IVIG category domestically with 15.5 per cent, based on production volumes.
Last month, CITIC Capital’s CCRE Holdings revealed in a regulatory filing submitted with the US Securities and Exchange Commission that it had tabled a cash proposal of USD 110.00 apiece.
The unit, which had already built up a 5.1 per cent stake at the time of the statement, said in its letter sent to CBP’s chairman and chief executive dated 11th June its “highly attractive” offer gives stockholders a chance to cash out at a premium of 30.4 per cent.
Now, however, it appears as though Ping An could trigger a bidding war, if it decides to go ahead and table a rival proposal, that is.
Sources told Bloomberg a unit of the insurance powerhouse has already started asking potential partners if they would be interested in a joint bid.
Unsurprisingly, representatives for CBP and Ping An declined to comment when contacted by the news provider.
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