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UK's Sinclair Pharma agrees to potential offer from China's Huadong

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UK's Sinclair Pharma agrees to potential offer from China's Huadong

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(Reuters) - Britain's Sinclair Pharma <SPH.L> has agreed on the terms of a potential 32 pence per share cash offer from a unit of China's Huadong Medicine Co <000963.SZ>.

The proposed offer, which would value the London-listed maker of skin lifting, collagen stimulation treatments and dermal fillers at roughly 161.2 million pounds, comes after three deadline extensions for Huadong to make a bid.

Shares of Sinclair erased some earlier gains after the possible buyout offer and were up 1 percent at 20.05 pence by 1622 GMT, despite the potential bid's 61.6 percent premium.

Huadong has also agreed to announce a firm intention to make an offer for Sinclair before Oct. 2, ahead of the Oct. 5 deadline under UK takeover rules.

Sinclair has gained 8.2 percent in market value since early July, when Huadong first confirmed it had made an approach.

It is intended that the offer, if made, would be structured as a recommended offer to be implemented by way of a scheme of arrangement, the companies said on Tuesday.

"Sinclair independent directors are of the view that the possible offer is an attractive proposal which they would be prepared to recommend to Sinclair shareholders," the British company said.

(Reporting by Muvija M in Bengaluru; Editing by David Goodman)

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