GNC Holding Inc. and its largest shareholder, Harbin Pharmaceutical, have agreed on a closing price ahead of the auction. The price of acquisition includes the USD $550 million (RMB 3.8 billion yuan) of cash, the USD $210 million (RMB 1.45 billion yuan) subordinated loan, and the issuance of USD $10 million (RMB 69 million yuan) in junior convertible notes and certain debts to GNC’s unsecured creditors.
However, the content is still subject to court approval and bidding at an auction in September to determine the final purchaser. The bidding for GNC is currently open until September 11 and the auction will be held on September 15, with a court hearing on September 17. Therefore, it is possible that there will be other bidders in the auction, and such a pre-auction agreement may be breached. (Shukangzhengxun)