Morgan Stanley participates in MBO of Chinese drug company

The management buyout, which has been accepted by shareholders owning 96% of the company, values Sihuan Pharmaceutical at $318 million – although only $74.4 million of new capital is needed.

The Asian private equity arm of Morgan Stanley and a group of management shareholders yesterday announced that their offer to take Singapore-listed Sihuan Pharmaceutical Holdings Group private has been declared unconditional in all respects, meaning the buyout will go ahead.

The offering, which values the Chinese drug company at S$458 million $318 million, will be the first successful take-private deal in Asia this year. However, the buyers had a good starting point since...

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