David Gao Issues Statement Following Decision by the Grand Court of the Cayman Islands
BEIJING--(BUSINESS WIRE)--Dec 17, 2018--Mr. David (Xiaoying) Gao, a shareholder of China Biologic Products Holdings, Inc. (“China Biologic” or the “Company”) (NASDAQ: CBPO), today issued the following statement on the Grand Court of the Cayman Islands’ recent decision regarding his lawsuit against the Company:
“I am disappointed that my lawsuit was dismissed and will evaluate all options as I continue my efforts to protect my and other minority shareholders’ interests in the company.
“It is unfortunate that the legal process is hindered because of a Cayman law technicality with regard to my standing to file such a lawsuit before the court can hear the substance of the case regarding the improper purpose of the Board’s actions. The Board’s hastily arranged private placement to a small group of handpicked investors, including Centurium Capital, Chairman David Li’s private equity fund, improperly transferred voting power away from the minority shareholders. With the assigned voting rights from the new investors, the Board can block any decision or action it does not support, which should be alarming given their poor track record.
“The Board has taken a number of questionable actions, including failing to engage on an US$118.00 all-cash proposal to acquire the Company and instead moving forward with a value destructive private placement that resulted in China Biologic’s stock falling to the lowest at $60.08.
“I believe the minority shareholders have lost confidence in the Board’s ability to act on behalf of their interests. While it is quite clear that all shareholders would have been best served if the Board had accepted the $118 offer just months ago, I am particularly concerned that David Li may be capable of using his concentrated voting power to take China Biologic private at a price lower than what the Board claimed did not reflect the intrinsic value of the company.
“The best interests of the Company, its customers and its shareholders are at stake and I appreciate the continued support of my fellow shareholders as I take all the necessary steps to ensure China Biologic’s Board acts in a responsible manner.”
View source version on businesswire.com:https://www.businesswire.com/news/home/20181217005477/en/
CONTACT: Sard Verbinnen & Co
Ron Low/Yin Ai
+852 3842 2200
Matt Benson/Hannah Dunning
+1 212 687 8080/+1 415 618 8750
KEYWORD: UNITED STATES ASIA PACIFIC NORTH AMERICA CARIBBEAN CAYMAN ISLANDS CHINA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Mr. David (Xiaoying) Gao
Copyright Business Wire 2018.
PUB: 12/17/2018 10:05 AM/DISC: 12/17/2018 10:05 AM