Mindray Medical (NYSE:MR) said today that its top executives offered to pay $3.5 billion to buy the stake in the Chinese medical device company they don’t already own and take it private.
The $30-per-share offer represents a 9.2% premium over yesterday’s closing price on MR shares of $27.47. The news pushed the stock up 7.6% to $29.56 in mid-day trading today.
Mindray said co-CEOs Li Xiting and Cheng Minghe and chairman Xu Hang made the offer today and that it will appoint a committee of independent investors to review the bid.
“The company cautions its shareholders and others considering trading in its securities that the board just received the non-binding proposal and has not made any decisions with respect thereto. 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,” Mindray said.
Xiting, Minghe and Hang said they intend to hold on to any stakes they acquire.
“We believe that the acquisition will provide superior value to the company’s shareholders,” they wrote in an offer letter. “In considering the proposed acquisition, you should be aware that we are interested only in acquiring the outstanding shares that the buyer group and their respective affiliates do not already own, and that the buyer group and their respective affiliates do not intend to sell their stake in the company to a 3rd party.”
Hang, Minghe, Xiting and entities they control collectively own some 63.7% of Mindray’s voting shares, according to regulatory filings.
