Synutra International, Inc. Completes Private Placement with Warburg Pincus
Synutra plans to use the net proceeds from this financing for general corporate purposes.
18/06/07 Synutra International, Inc., one of China's leading manufacturers of dairy-based nutritional products for infants, children and adults, announced the completion of its sale of 4 million shares of $0.0001 par value common stock, or approximately 7.4% of its outstanding shares of common stock, to an affiliated investment fund of Warburg Pincus LLC, the global private equity firm, for $66 million. The sale was previously announced on the company's current report on Form 8-K filed on May 29, 2007. Synutra plans to use the net proceeds from this financing for general corporate purposes. Pursuant to the terms of the transaction, Synutra granted Warburg Pincus registration rights with respect to the shares, and the right to designate a person to serve on the Board of Directors of the company so long as Warburg Pincus or its affiliates own at least 50% of the common stock acquired in the transaction
"We are delighted with this partnership and the significant investment made by Warburg Pincus. Their support will be instrumental in Synutra's growth and validates the continuing successful execution of our strategy," said Synutra Chairman and Chief Executive Officer Liang Zhang. Commenting on the investment, David Li, a Warburg Pincus Managing Director said, "We are pleased to contribute to the continued success of Synutra. We have great confidence in the management and the business and believe this investment greatly complements our existing portfolio."
