SHANGHAI, April 30, 2015 /PRNewswire/ — WuXi PharmaTech (Cayman) Inc. (“WuXi” or the “Company“) (NYSE: WX), a leading global contract R&D services provider, today announced that its board of directors has received a preliminary non-binding proposal letter, dated April 29, 2015, from a consortium (the “Consortium“) led by Dr. Ge Li (the “Chairman“), founder, chairman and chief executive officer of the Company, and Ally Bridge Group Capital Partners (“ABG“) that proposes a transaction (the “Transaction“) involving the acquisition of all outstanding shares of the Company not already owned by members of the Consortium for $46.00 in cash per American Depositary Share (“ADS“, each ADS representing eight ordinary shares), or $5.75 in cash per ordinary share. ABG is a global healthcare-focused investment group, founded and led by Mr. Frank Yu (formerly a Managing Director of Goldman Sachs and Och-Ziff Capital).
According to the proposal letter, the Consortium will form an acquisition company for the purpose of implementing the Transaction, and the Transaction is intended to be financed with a combination of debt and equity capital. The proposal letter also states that the Chairman and ABG have agreed to work together exclusively in pursuing the Transaction. A copy of the proposal letter is attached hereto as Exhibit A.
The Company’s Board of Directors will form a special committee comprising independent directors of the Company (the “Special Committee“) to consider the proposed transaction. The Special Committee is expected to be authorized to retain independent advisors, including a financial advisor and legal counsel, to assist it in its work.
No decisions have been made by the Special Committee with respect to the Company’s response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
ABOUT WUXI