Sinovac Biotech Ltd. (NASDAQ: SVA) was riding high early Thursday morning, following the offer for a potential buyout, but it looks like this company doesn’t want to take the bait. It announced that the special committee of its board of directors received on Thursday a preliminary non-binding proposal letter, from a consortium comprised of Chinese companies to acquire all the outstanding common shares for $7.00 in cash per common share.
Ultimately this is a premium of 20.7% from Wednesday’s closing price ($5.80). At the same time, it is a premium of 29.3% from the 50-day moving average (5.41) and a premium of 31.3% from the 200-day moving average ($5.33).
Sinovac is a China-based biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against infectious diseases.
In the release, Sinovac’s board of directors made sure to caution shareholders:
The company’s directors caution the company’s shareholders and others considering trading in the company’s securities that no decisions have been made with respect to the company’s response to either proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that either proposal or any other transaction will be approved or consummated. The company does not undertake any obligation to provide any updates with respect to these or any other transactions, except as required under applicable law.
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Shares of Sinovac were up 6.2% to $6.55 Thursday morning, with a consensus analyst price target of $6.00 and a 52-week trading range of $4.38 to 6.38.
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