Australia's Vitaco is set to enter into a scheme agreement worth more than 300 million Australian dollars (228 million U.S. dollars) with Shanghai Pharmaceuticals and Chinese investment firm Primavera Capital.
Under the proposed Vitaco deal, shareholders will receive 2.25 Australian dollars (1.71 U.S. dollars) in cash per share, which values the company at about 314 million Australian dollars (238.98 million U.S dollars), the Australian Associated Press reported on Thursday
Vitaco shares were initially offered to investors, when it was listed on the Aussie share market less than a year ago at 2.10 Australian dollars (1.60 U.S. dollars), valuing the company at 292 million Australian dollars (222.23 million U.S. dollars).
News of the possible merger was favorably received by shareholders as Vitaco shares soared more than 20 percent on Thursday up by 35 cents at 2.11 Australian dollars (1.61 U.S. dollars) at 14:10 AEST.
However, the takeover bid is yet to pass several other conditions including a shareholder and a court approval as well as receiving a green light from Australia's Foreign Investment Review Board.
