Genetron Holdings has announced it will go private through an acquisition by a group of investors led by its co-founder and CEO Sizhen Wang and CICC Healthcare Investment Fund which values the Chinese precision oncology platform at $126 million.
The company’s US-listed American Depository Shares (ADSs) jumped 27% in early Thursday trading to $1.1950.
Under the terms of the deal, holders of the company’s ADSs will receive $1.36 in cash per ADS, a 42% premium to the closing price on October 10.
The merger is expected to close during the first quarter of 2024, subject to conditions including the approval of shareholders holding two-thirds of its shares.
The company said members of the consortium and rollover shareholders represent roughly 59.7% of its shares.
Genetron specializes in offering molecular profiling tests, early cancer screening products and companion diagnostics development.
Contact the author at stephen.gunnion@proactiveinvestors.com