Qingtai Liu, Chairman and Chief Executive Officer of Shengtai Pharmaceutical Inc. made an offer to acquire remaining 59.5% stake in Shengtai Pharmaceutical Inc. from Pope Investments LLC, a fund of Pope Asset Management, LLC and other investors for $9.4 million.
April 17, 2012 at 12:00 am EDT
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Qingtai Liu, Chairman and Chief Executive Officer of Shengtai Pharmaceutical Inc. made an offer to acquire remaining 59.5% stake in Shengtai Pharmaceutical Inc. (OTCBB:SGTI) from Pope Investments LLC, a fund of Pope Asset Management, LLC and other investors for $9.4 million in cash on April 17, 2012. Qingtai Liu will offer $1.65 per share for 5.7 million shares of Shengtai Pharmaceutical. The transaction will be financed with a combination of debt and equity capital. The Board of Directors of Shengtai Pharmaceutical intends to form a special committee of independent directors to consider the offer. Qingtai Liu will retain his legal counsel for advising on the transaction.
As on April 24, 2012, Shengtai Pharmaceutical, Inc. has established a special committee of its Board of Directors to consider the preliminary, non-binding proposal received from Qingtai Liu. The special committee is composed of the independent Directors of Shengtai Pharmaceutical including Tao Jin, Lawrence Lee and Yaojun Liu. The special committee will retain legal advisor and independent financial advisor to assist it in its evaluation of the offer and any additional proposal that may be made by Qingtai Liu and his affiliates. Roth Capital Partners, LLC acted as financial advisor and Lee Edwards of Shearman & Sterling LLP acted as legal advisor for special committee of Shengtai Pharmaceutical.
Shengtai Pharmaceutical, Inc. (Shengtai), through its wholly owned subsidiary, Weifang Shengtai Pharmaceutical Inc., is a producer of pharmaceutical-grade glucose in China. The Company's products include pharmaceutical-grade glucose or dextrose, used for medical purposes, as well as other glucose and cornstarch products used for the food and beverage industry, and for industrial productions in China. The Company's glucose series include dextrose monohydrate (DMH), dextrose anhydrous, oral glucose dextrin and rough glucose for other processing purposes. Its starch series include pharmaceutical starch and edible corn starch. The Company's customers include healthcare institutions, food and beverage companies, pharmaceutical companies, medical supply exporters and medical supply. The Company also exports its products to approximately 70 different countries overseas, such as Japan, Singapore, Korea, Australia, Russia and India.
Qingtai Liu, Chairman and Chief Executive Officer of Shengtai Pharmaceutical Inc. made an offer to acquire remaining 59.5% stake in Shengtai Pharmaceutical Inc. from Pope Investments LLC, a fund of Pope Asset Management, LLC and other investors for $9.4 million.
SHENGTAI PHARMACEUTICAL, INC. 
