China Biologic rejects former CEO-led consortium’s offer: Reuters

China Biologic Products Holdings Inc (CBPO.O) said on Friday it had rejected an offer from a consortium led by its former chief executive and that an affiliate of CITIC Capital unit had withdrawn a competing bid.

Shares of the company that makes and sells plasma products were down 14 percent to $86.5 premarket in premarket trading.

On Monday, the Beijing-based company received a $3.9 billion all-cash buyout offer from a consortium of investment firms, valuing China Biologic slightly higher than an earlier proposal from a CITIC Capital unit.

China Biologic said the consortium’s offer was not in the “best interests of the company and its shareholders as it did not reflect the intrinsic value of the company”.

China Biologic also said it expects to raise nearly $590 million from a deal to sell over 5 million of its shares, about 15 percent of the enlarged share capital after the issuance.

Under the terms of the agreement, the company will its newly issued shares to investors that include Centurium Capital Management Ltd, CITIC, and Hillhouse Capital Management at $100.90 per share.

The company said it intends to use the proceeds for supporting its business expansion plan and strategic acquisitions.