FRANKFURT Germany's Biotest (BIOG_p.DE) has agreed to be bought by Chinese investor Creat Group Corp in a cash deal valuing the blood plasma products maker at 1.3 billion euros ($1.4 billion), including debt.
Under the deal, which follows Creat's purchase of Britain's Bio Products Laboratory last year, shareholders will receive 28.50 euros per ordinary share in Biotest and 19 euros per preference share, the two companies said on Friday.
That's a 43 percent premium over the price at which the ordinary shares had traded before Creat's plans to buy Biotest became known, and a slight discount to the price of preference shares, which carry no voting rights.
"This transaction would deliver immediate value for stakeholders and long term value for the company," Biotest Chief Executive Bernhard Ehmer said in a statement on Friday.
Biotest's share capital is split evenly between ordinary and preference shares, with the latter share class being completely in free-float ownership.
OGEL, the investment vehicle of late company founder Hans Schleussner's family that owns 50.6 percent of ordinary shares in Biotest, has agreed to tender its stake, the companies said.
Creat announced last month that it had made an offer for Biotest, whose products are used to treat blood coagulation disorders, auto-immune diseases and immune deficiencies.
Ehmer said at the time that Creat had not been the only potential bidder but the company chose to talk to the Chinese investor because its proposal was "thought through".
Biotest's management and supervisory board support the deal, which is conditional on at least 75 percent of ordinary shares being tendered to Creat.
Credit Suisse is acting as financial advisor to Biotest, and Ashurst LLP is legal advisor. BofA Merrill Lynch is acting as financial advisor to Creat, and Kirkland & Ellis International LLP is providing legal advice.
($1 = 0.9407 euros)
(Reporting by Maria Sheahan; editing by Susan Thomas)