Investing in The Next China

Bloomberg: Sinovac Investor Demands 75% More for China Vaccine Maker Buyout

BLOOMBERG: 2016-08-31 07:00:00.0 GMT

(Bloomberg) -- Heng Ren Investments calls Sinovac Biotech management’s going-private offer “epic failure of corporate governance,” in Aug. 31 statement.

* Heng Ren analysis finds ADRs “intrinsic value” is $1084 vs. $6.18 bid from Sinovac president/CEO Weidong Yin and SAIF Partners

* Analysis includes peer comparison, discounted cash flow, leveraged buyout valuations

* Going-private offer came two days after China approved Sinovac’s EV71 (Enterovirus 71) vaccine for commercialization

* Heng Ren sees sales of EV71 vaccine for hand, foot and mouth disease reaching $400 million annually

* Proposed bid prevents shareholders from realizing this  “significant value,” Peter Halesworth, Boston-based Heng Ren’s managing partner, said in Aug 16 letter seeking increase.