Beijing-based precision oncology firm Genetron Holdings Ltd announced receipt of a buyout and take-private offer from CEO, co-founder, and chairman Wang Sizhen. The proposal values the company at USD 0.272 per ordinary share, or USD 1.36 per American depositary share (ADS).
Company Background
Genetron specializes in molecular profiling tests, early cancer screening, and companion diagnostics. The firm went public on Nasdaq in June 2020, raising USD 256 million. However, shares have declined from a high of USD 16.94 in 2021 to USD 1.18 as of yesterday’s close.
Offer Details
The board stated it has yet to fully review the proposal but has formed a committee for evaluation. Wang plans to fund the all-cash deal with debt and equity, including rollover equity and cash from himself and third-party sponsors.
Market Performance
Despite the stock decline, Genetron reported strong sales growth in 2021, up 25.3% YOY to RMB 532 million (USD 83.5 million). The company has partnerships with HutchMed, AstraZeneca, and Chia Tai Tianqing in oncology diagnostics.-Fineline Info & Tech
