ShangPharma Going Private

| About: ShangPharma Corporation (SHP)

On July 6th I wrote an article titled: "3 China Stocks With Announced Going Private Proposals." After writing this article we did get a new going private proposal by a new Chinese company.

On July 6 ShangPharma Corporation (SHP) announced that its Board of Directors has received a non-binding proposal letter dated July 6, 2012 from its Chairman and Chief Executive Officer, Mr. Michael Xin Hui and TPG Star Charisma Limited to acquire all of the outstanding shares of ShangPharma not currently owned by them in a going private transaction for between $8.50 and $9.50 per American Depositary Share in cash, subject to certain conditions. Mr. Michael Xin Hui and TPG currently own approximately 54% and 11% of ShangPharma's ordinary shares, respectively.

(Click to enlarge)

ShangPharma Corporation is a leading China-based contract research organization providing high-quality and cost-effective services for the pharmaceutical and biotechnology industry. It offers a broad range of high-quality, integrated services across the drug discovery and development process to help international and Chinese pharmaceutical and biotechnology companies discover and develop novel drug candidates efficiently. ShangPharma's services consist of discovery chemistry, discovery biology and preclinical development, pharmaceutical development and biologics services.


Here is a table of four Chinese "Going Private" companies. China Mass Media offers the highest potential gain for investors out of these four stocks. None of these deals are closed yet.

Company Share price on July 6 Offer price
ShangPharma $7.95 $8.50 - $9.50
Yucheng (YTEC) $3.67 $3.80
China Nuokang Bio (NKBP) $5.01 $5.80
China Mass Media (CMM) $3.76 $5

Disclosure: I am long CMM.

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