China Biologic announces updates on unsolicited acquisition proposals

China Biologic Products Holdings, a leading fully integrated plasma-based biopharmaceutical company in China, announced that the Company's board of directors (the "Board") has received a letter dated August 23, 2018 from CITIC Capital MB Investment Limited, an affiliate of CITIC Capital Holdings Limited ("CITIC"), withdrawing its preliminary non-binding proposal dated June 11, 2018, with immediate effect.

The Company further announced that the Board has unanimously decided to reject the previously announced preliminary non-binding proposal dated August 17, 2018 from the consortium (the "Consortium") consisting of Feng Tai Global Limited, a company beneficially owned by Mr. David (Xiaoying) Gao, the former Chairman and CEO of the Company, GL Sandrose Investment L.P., World Investments Limited and CDH Utopia Limited.

After careful review of the Consortium's proposal, the Board has unanimously determined that it is not in the best interests of the Company and its shareholders as it did not reflect the intrinsic value of the Company and would abrogate the shareholders' opportunity to enjoy the long-term return from the Company's execution of its business strategy of growing into a leading global biopharmaceutical company.

In addition, the Company announced that it has entered into definitive agreements (the "Share Purchase Agreements") for the issuance and sale of an aggregate of 5,850,000 ordinary shares of the Company, which represents 14.9% of the enlarged share capital post the issuance and is expected to raise gross proceeds of approximately US$590 million.

The Company intends to use such proceeds to support its business expansion plan and strategic acquisitions. Under the Share Purchase Agreements, Centurium Capital Management Ltd. ("Centurium"), CITIC, Hillhouse Capital Management, Ltd. ("Hillhouse"), each via its respective investment vehicle(s), and PW Medtech Group Limited ("PWM", and together with Centurium, CITIC and Hillhouse, the "Investors") will subscribe for and purchase 3,050,000, 1,000,000, 1,000,000 and 800,000, respectively, newly issued ordinary shares of the Company at a per share purchase price of US$100.90, representing the closing price per share as quoted by the NASDAQ Global Market on August 23, 2018, and a premium of 2.5% and 7.9%, respectively, over the Company's 30 and 90 trading day volume weighted average price as quoted by the NASDAQ Global Market through August 23, 2018.

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