Today, Mindray Medical (NYSE:MR) announced a receipt of a revised non-binding proposal to acquire the company at US$27 per ADS or US$27 per ordinary share.
On September 3, 2015, 7 days ago, we sent out a premium note to members that the original go-private transaction slated for $30 per share may have been in trouble, citing an information arbitrage opportunity we found through Chinese media.
Mindray Arbitrage
This speaks to the importance of our unique brand of due diligence and access to information which may not be available in the U.S. We use this information to help investors protect their portfolios in cases just like this one. Our premium note from September 3rd read:
“On June 4, 2015, Mindray received a non-binding going private proposal from its executive chairman of the board, its CEOs and several other C-level officials to take the company private at $30 per ADS. The stock, in response to this, briefly moved higher toward $30, but has now settled down to about $24 per ADS.
Yesterday, the GeoTeam uncovered information from the Chinese media that suggests MR’s go-private transaction may be in jeopardy. As reported in this article on Caixin yesterday, MR’s management team is negotiating with different banks regarding a $2.2 billion loan necessary to take the company private. This would include a $1.5 billion 5-7 year term loan on a $650-$700 million bridge loan. The article reports that there doesn’t seem to be any bank that wants to support the go-private transaction.
The article continues to state that due to there being no bank interest, in the company hasn’t advanced to the second step of the go-private process, which entails submitting a plan for the company’s special committee to review. Therefore, we believe MR’s management may withdraw its going private proposal.”
We’ll provide updates as more information becomes available.
As always, we are confident that our access to information, expert team of analysts, and eyes for global arbitrage will help investors navigate the murky U.S. Listed China-based public company space.