SHANGHAI, Dec. 2, 2010 /PRNewswire-Asia-FirstCall/ --
Chemspec International Limited (NYSE: CPC; "Chemspec" or the
"Company", incorporated in the Cayman
Islands), a leading China-based contract manufacturer of
highly-engineered specialty chemicals, announced that its Board of
Directors has received a letter (the "Financing Letter"), dated
November 24, 2010, from the Company's
Chairman and Chief Executive Officer, Dr. Jianhua Yang. The Financing Letter
provides certain information regarding the financing of a proposal
from Dr. Yang to acquire certain outstanding shares of the Company
in a "going private" transaction (the "Proposed Transaction") set
forth in a proposal letter, dated November
11, 2010 (the "Proposal Letter").
According to the Financing Letter, Dr. Yang has entered into a
consortium agreement with Primavera Capital Management Ltd.
("Primavera Capital"), pursuant to which Dr. Yang and Primavera
Capital have agreed to form an acquisition vehicle for the purpose
of pursuing the Proposed Transaction on the basis outlined in the
Proposal Letter, and to provide equity and debt financing for the
Proposed Transaction. In addition, the Financing Letter
states that Dr. Yang and Primavera Capital have received a letter
from Standard Chartered Bank (Hong
Kong) Limited indicating that it is highly confident,
subject to certain conditions, of its ability to underwrite a
portion of the funds that would be required for the Proposed
Transaction through a senior secured credit facility.
According to the Financing Letter, Primavera Capital is a
China-based private investment
firm which focuses on buy-out, control-oriented, and growth capital
investments and was founded by Dr. Fred
Hu, the former Chairman of Greater
China at Goldman Sachs.
The Independent Committee formed by the Board of Directors is
continuing its evaluation of the Proposed Transaction. The
Board of Directors and the Independent Committee caution the
Company's shareholders and others considering trading in its
securities that no decisions have been made by the Independent
Committee with respect to Chemspec's response to the proposal for
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.
About Chemspec
Chemspec is a leading China-based contract manufacturer of highly
engineered specialty chemicals as well as fluorinated specialty
chemicals. In manufacturing specialty chemicals, Chemspec
also provides process design and process development services,
which enable efficient and rapid production of specialty chemicals
that are incorporated into the products of Chemspec's end users.
Chemspec's customers and end users include electronics,
pharmaceutical and agrochemical companies. For more
information, please visit http://www.chemspec.com.cn.
Safe Harbor Statements
This announcement contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified
by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
Such statements involve certain risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. Further information regarding
these and other risks is included in Chemspec's filings with the
U.S. Securities and Exchange Commission, including its registration
statement on Form F-1 and annual reports on Form 20-F, as amended
from time to time. Chemspec does not undertake any obligation
to update any forward-looking statement, except as required under
applicable law.
For further information, please
contact:
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Chemspec International Ltd.
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In Shanghai
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Carol Fang
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Tel: +86-21-63638108
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Email: ir@chemspec.com.cn
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Christensen
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In New York
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Kathy Li
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Tel: +1-212-618-1978
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Email: kli@christensenir.com
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In Hong Kong
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Tip Fleming
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Tel: +852-9212-0684
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Email: tfleming@christensenir.com
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SOURCE Chemspec International Limited