SciClone Pharmaceuticals, Inc (NASDAQ: SCLN) is glorying in the prospect of a sale, sending its shares much, much higher on Thursday.
The company, based in Foster City, California, agreed to be acquired by a consortium of companies led by China-headquartered GL Capital for $11.18 per share in cash. Collectively, they will be known as the Buyer Consortium.
The transaction will be funded by the Buyer Consortium through a combination of equity financing to be provided by the Buyer Consortium and debt financing, and is not subject to a financing condition.
The transaction, unanimously approved by SciClone's Board, values the Company at approximately $605 million, on a fully-diluted basis, and represents a premium of 11% over SciClone's closing stock price on Wednesday and a premium of 16% over its 10-day volume-weighted average closing stock price.
The transaction, which is expected to close this calendar year, is subject to approval by SciClone stockholders and other customary closing conditions.
SciClone is a specialty pharmaceutical company with a substantial commercial business in China and a product portfolio spanning major therapeutic markets including oncology, infectious diseases and cardiovascular disorders.
SciClone's flagship, ZADAXIN®, is approved in over 30 countries and may be used for the treatment of hepatitis B, hepatitis C, and certain cancers, and as an immune system enhancer.
As the clock approached noon ET on Thursday, SciClone stock was still climbing the charts, gaining 83 cents, or 8.2%, to $10.93, within a 52-week trading range from $8.55 to $15.02.
