The Blackstone Group has made an investment in Singapore-listed animal pharmaceutical company China Animal Healthcare (CAH) via a subscription of $45 million worth of convertible bonds and shares, according to a company disclosure posted on the Singapore Exchange.
China-based CAH manufacturers, sells and distributes animal drugs through a network of 5400 animal drug retailers and 20 poultry corporations throughout China. The company operates from four regional offices and has 14 production lines located in Shijiazhuang, Shenzhou, Shanxi, Inner Mongolia and Beijing. The company was listed on the Singapore Exchange in 2007.
Under the terms of the investment, Blackstone will subscribe for US$40 million in principal amount of convertible bonds at par value and 20 million new shares for a consideration of S$7 million (€3.9 million; $5 million)at the issue price of S$0.35 per share issued by CAH.
The bonds have a maturity period of five years and will be convertible from January 1 2012 with the minimum conversion price at S$0.288. The conversion price will then be further adjustable, depending on whether the company decides to go ahead with plans to dual-list in Hong Kong.
The placement price of S$0.35 represents an 11.8 percent premium to the weighted average price for trades done on the Singapore Exchange for July 1.