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.
WuXi PharmaTech (NYSE: WX) is a leading open-access R&D capability and technology platform company serving the pharmaceutical, biotechnology, and medical device industries, with operations in China and the United States. As a research-driven and customer-focused company, WuXi PharmaTech provides pharmaceutical, biotechnology, and medical device companies with a broad and integrated portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process. WuXi PharmaTech's services are designed to help its global partners in shortening the cycle and lowering the cost of drug and medical device R&D. WuXi is also building a platform to provide clinical diagnostic services directly to physicians and their patients globally. The operating subsidiaries of WuXi PharmaTech are known as WuXi AppTec. For further information, please visit http://www.wuxiapptec.com.
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This press release contains certain statements that are not descriptions of historical facts, but are "forward-looking" statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. WuXi may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about WuXi's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, risks outlined in WuXi's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3 and 20-F, in each case as amended. WuXi does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
April 29, 2015
The Board of Directors
WuXi PharmaTech (Cayman) Inc.
288 Fute Zhong Road
China (Shanghai) Pilot Free Trade Zone
Ladies and gentleman:
We, Dr. Ge Li (the "Chairman"), founder, chairman and chief executive officer of WuXi PharmaTech (Cayman) Inc. (the "Company"), and Ally Bridge Group Capital Partners ("ABG") are pleased to submit this preliminary non-binding proposal to acquire all outstanding shares of the Company not already owned by us in a transaction (the "Acquisition"), as described below.
We believe that our proposal provides a very attractive opportunity to the Company's shareholders. Our proposal represents a premium of 16.2% to the Company's closing price on April 28, 2015, a premium of 24.1% to the volume-weighted average closing price during the last 180 trading days and a premium of 8.7% to the Company's 52 week high closing price.
In closing, we would like to express our commitment to working together to bring this Acquisition to a successful and timely conclusion. Should you have any questions regarding this proposal, please do not hesitate to contact us. We look forward to hearing from you.
[signatures begin on next page]
/s/ Ge Li
ALLY BRIDGE CAPITAL PARTNERS
/s/ Frank Yu
Name: Frank Yu
Title: Founder and CEO
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SOURCE WuXi PharmaTech (Cayman) Inc.