China Nepstar Chain Drugstore Gets Going Private Proposal For $1.30/share

(RTTNews) - China Nepstar Chain Drugstore Ltd. (NPD), a retail drugstore chain in China, announced Monday that its board of directors has received a preliminary non-binding 'Going Private' proposal at a price of $1.30 per share or $2.60 per ADS.

The proposal letter, dated July 6, was from the company's chairman of the board of directors Simin Zhang, and China Neptunus Drugstore Holding Ltd., an investment vehicle wholly owned by Zhang. The Buyer Parties proposed to acquire all of the outstanding ordinary shares and the American Depositary Shares of the company, in both cases, that are not already beneficially owned by them.

According to the proposal letter, the acquisition is intended to be financed with debt or equity capital or a combination thereof.

The company expects that its board of directors will form a special committee consisting of independent directors to consider this proposal, and that the Committee will retain financial, legal and other advisors to assist it in its review of the acquisition.

China Nepstar cautioned its shareholders and others considering trading its ordinary shares that no decisions have been made with respect to the Company's response to the proposed transaction.

There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.