MSPE Asia in $318m Singaporean take-private

Morgan Stanley Private Equity Asia has offered to de-list Sihuan Pharmaceutical, a Chinese drug maker that specialises in cardio-cerebral vascular drugs.

Morgan Stanley Private Equity Asia has made a S$458.25 million ($317.5 million; €222.2 million) offer to acquire all the shares of Singapore-listed Sihuan Pharmaceutical Holdings. 

Sihuan researches, produces and sells drugs in China, specialising in cardio-cerebral vascular drugs. 

MSPE Asia has offered S$0.975 per share – a 27 percent premium on the last traded share price of S$0.765 on 21 August – valuing the company at S$458.25 million.

Ninety percent of shareholders must approve the deal. It has the backing of Sihuan's senior management, which owns about 76 percent of the company's shares. The acceptance threshold can be reduced from 90 percent if the firm receives approval from the Securities Industry Council of Singapore.

MSPE Asia will make the investment from Morgan Stanley Private Equity Asia Fund III, a $1.5 billion fund closed in August 2008. The fund is focused primarily on investments in China, South Korea, Singapore and Taiwan, and also considers opportunities in Japan, India and Australia.

MSPE Asia's most recent deal was in December last year when it nvested INR1.82 billion ($37.4 million; €26.2 million) in Biotor Industries, a castor oil manufacturer in India.

Headquartered in Hong Kong, the firm also has offices in Mumbai, Beijing, Seoul, Tokyo and New York.