Reuters – ShangPharma Gets Offer to Go Private

China-based ShangPharma Corp‘s founder and TPG Star Charisma has offered to take the company private, sending its shares up as much as 22 percent on Friday morning, writes Reuters. Chief Executive Michael Xin Hui and the private fund offered $8.50 to $9.50 for each American Depository Share not currently owned by them.

(Reuters) – China-based ShangPharma Corp’s (SHP.N) founder and TPG Star Charisma Ltd offered to take the company private, sending its shares up as much as 22 percent on Friday morning.

Chief Executive Michael Xin Hui and the private fund offered $8.50 to $9.50 for each American Depository Share not currently owned by them.

The offer values the company between $157.5 million and $176.1 million.

Xin Hui and TPG together own about 65 percent of the company’s ordinary shares, ShangPharma said in a statement.

The contract research organization said it formed a special committee to consider the offer, which will be financed through a combination of debt and equity.

ShangPharma ADSs were trading up 19 percent at $8.17 on Friday morning on the New York Stock Exchange. They had touched a high of $8.40 earlier in the session.

(Reporting by Vidya P L Nathan in Bangalore; Editing by Sriraj Kalluvila)