Updated on 20 November 2012
China Biologic's rights plan entitles stockholders to purchase one 1-1,000th share of preferred stock for $60
Singapore: China Biologic Products, a leading fully integrated plasma-based biopharmaceutical company in China, has adopted a stockholder rights plan. Pursuant to the plan, the company will issue a dividend of one right for each share of its common stock held of record by stockholders as of the close of business on November 30, 2012.
The stockholder rights plan, which has a term of two years, is designed to guard against partial tender offers and other coercive tactics to gain control or undue influence of China Biologic without offering a fair and adequate price and terms to China Biologic's stockholders.
The plan does not prevent China Biologic's board of directors from considering or accepting an offer to acquire China Biologic if the board believes that such action is fair, advisable and in the best interest of China Biologic's stockholders as a whole.
Each right will initially entitle stockholders to purchase one one-thousandth share of China Biologic's preferred stock for $60.00. However, the rights are not immediately exercisable and will become exercisable only upon the occurrence of certain events.
More specifically, if a person or group acquires 10 percent or more of China Biologic's common stock (including through derivatives) while the stockholder rights plan remains in place, then the rights will become exercisable by all rights holders (except the acquiring person or group) for shares of China Biologic's common stock having a then-current market value of twice the exercise price of a right.