SC 13D
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. )*
Simcere Pharmaceutical Group
Ordinary Shares, par value US$0.01 per share
(Title of Class of Securities)
82859P 10 41
Weidong Ren
Simcere Pharmaceutical Group
No. 699-18 Xuan Wu Avenue, Xuan Wu District
Nanjing, Jiangsu Province 210042, The Peoples Republic of China
Telephone: +86-25-8555-6666
with a copy to:
Leiming Chen
Simpson Thacher & Bartlett LLP
ICBC Tower, 35/F, 3 Garden Road, Central, Hong Kong
Tel: +852-2514-7630
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
May 18, 2008
(Date of Event Which Requires Filing of This Statement)
(
Continued on the following pages)
If the filing person has previously filed a statement on Schedule 13G to report the
acquisition that is the subject of this Schedule 13D, and is filing this schedule because
of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o
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This CUSIP number applies to the Issuers American
Depositary Shares, each representing two Ordinary Shares. |
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CUSIP No. 82859P 10 4 |
13D |
Page 2 of 8 Pages |
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom
copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons
initial filing on this form with respect to the subject class of securities, and for any
subsequent amendment containing information which would alter disclosures provided in a
prior cover page.
The information required on the remainder of this cover page shall not be deemed to be
filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or
otherwise subject to the liabilities of that section of the Act but shall be subject to all
other provisions of the Act (however, see the Notes).
(Continued on the following pages)
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1 |
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Names of Reporting Persons
Jinsheng Ren |
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2 |
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Check the Appropriate Box if a Member of
a Group |
(A) o |
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(B) þ |
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3 |
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SEC Use Only |
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4 |
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Source of Funds |
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OO - See Item 3 |
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5 |
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Check Box if Disclosure Of Legal
Proceedings is Required Pursuant to Item 2(d) or 2(e)
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6 |
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Citizenship or Place of Organization |
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The Peoples Republic of China |
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7 |
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Sole Voting Power |
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Number of |
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2,200,000 |
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Shares |
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Shared Voting Power |
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Beneficially |
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Owned by |
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50,381,556 |
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Each |
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Sole Dispositive Power |
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Reporting |
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Person With |
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2,200,000 |
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10 |
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Shared Dispositive Power |
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50,381,556 |
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11 |
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Aggregate Amount Beneficially Owned by Each Reporting Person |
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52,581,556 |
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12 |
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Check Box if the Aggregate Amount in Row
(11) Excludes Certain Shares
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13 |
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Percent of Class Represented by Amount
In Row (11) |
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42.3% |
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14 |
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Type Of Reporting Person |
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IN |
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CUSIP No. 82859P 10 4
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13D
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Page 4 of 8 Pages |
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Item 1. |
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Security and Issuer |
This statement on Schedule 13D (this Statement) relates to Ordinary Shares, par value
US$0.01 per share (Ordinary Shares), of Simcere Pharmaceutical Group (the Issuer). The
principal executive offices of the Issuer are located at No. 699-18 Xuan Wu Avenue, Xuan Wu
District, Nanjing, Jiangsu Province 210042, The Peoples Republic of China.
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Item 2. |
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Identity and Background |
(a) The name of the person filing this Schedule 13D is Jinsheng Ren (Mr. Ren).
(b)-(c) Mr. Rens present occupation is the Chairman of the Board of Directors and Chief Executive
Officer of the Issuer. The Issuer, through its operating subsidiaries, manufactures and sells
branded generic pharmaceuticals and patented anti-cancer biotech product Endu in China. The
business address of both Mr. Ren and the Issuer is No. 699-18 Xuan Wu Avenue, Xuan Wu District,
Nanjing, Jiangsu Province 210042, The Peoples Republic of China.
(d) During the last five years, Mr. Ren has not been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors).
(e) During the last five years, Mr. Ren was not a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction as a result of which was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any violation with respect to such laws.
(f) Mr. Ren is a citizen of the Peoples Republic of China.
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Item 3. |
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Source and Amount of Funds or Other Consideration |
Mr. Ren has not purchased any Ordinary Shares of the Issuer that resulted in him acquiring
beneficial ownership of more than 5% of the outstanding Ordinary Shares of the Issuer.
Mr. Ren may be deemed to beneficially own 50,381,556 Ordinary Shares of the Issuer indirectly
through his ownership of New Good Management Limited (NGM), a British Virgin Islands company that
holds 50,381,556 Ordinary Shares of the Issuer. In connection with NGMs sale of 11,820,000
Ordinary Shares of the Issuer on May 12, 2008, NGM repurchased some of its own shares from some of
its other shareholders with the consideration it received from sale of the Issuers Ordinary Shares
and reduced the number of its total outstanding shares on May 18, 2008. Also on May 18, 2008, Mr.
Ren transferred some of his NGM shares to his ex-wife, Suqin Peng. As a result of the foregoing,
on May 18, 2008, Mr. Rens percentage of beneficial ownership in NGM increased from approximately
49.1% to approximately 51.1%, and Mr. Ren became the controlling shareholder of NGM. According to
Rule 13d-3, Mr. Ren may be deemed to have acquired indirect beneficial ownership of the Ordinary
Shares of the Issuer that are directly held by NGM.
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Item 4. |
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Purpose of Transaction |
All of the Ordinary Shares beneficially owned by Mr. Ren have been acquired for investment
purposes.
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CUSIP No. 82859P 10 4
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13D
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Page 5 of 8 Pages |
Mr. Ren currently serves as the Chairman of the Board of Directors of the Issuer. In his
capacity as a director, he will participate in, and have the opportunity to vote on, matters that
are presented to the Board of Directors of the Issuer, including, without limitation, any
extraordinary corporate transactions and material changes to the Issuers capitalization, dividend
policy, business or corporate structure. Additionally, Mr. Ren currently serves as the Chief
Executive Officer of the Issuer and, in his capacities as such, supervises the overall operations
of the Issuer and is responsible for assuring that all directions of the Board of Directors are
carried into effect.
Mr. Ren may acquire additional securities of the Issuer, or dispose of all or any portion of
his securities, in open market or privately negotiated transactions or otherwise. Any open market
or privately negotiated purchases or sales may be made at any time without prior notice. Mr. Ren
has been granted stock options to acquire 5,500,000 Ordinary Shares of the Issuer under the
Issuers 2006 Stock Incentive Plan (the Stock Incentive Plan)(a copy of which is incorporated by
reference as Exhibit 2 hereto). Of such options, options to acquire 2,200,000 Ordinary Shares of
the Issuer have vested and are exercisable by Mr. Ren as of the date hereof. The remaining options
to acquire 3,300,000 Ordinary Shares of the Issuer will vest in three equal installments on each of
November 15, 2009, 2010 and 2011, respectively, pursuant to the Stock Incentive Plan and the terms
of the nonqualified stock option agreement between the Company and Mr. Ren (the Stock Option
Agreement)(a copy of which is attached as Exhibit 1 hereto).
Mr. Ren has no present plans or proposals in his capacity as a stockholder of the Issuer that
relate to or that would result in any transaction, event or action specified in clauses (a) through
(j) of Item 4 of Schedule 13D; provided, that Mr. Ren may, at any time, review or reconsider his
position with respect to the Issuer and reserves the right to develop such plans or proposals.
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Item 5. |
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Interest in Securities of the Issuer |
(a) As of the date hereof, Mr. Ren may be deemed to beneficially own in the aggregate
52,581,556 Ordinary Shares, representing approximately 42.3% of the outstanding Ordinary Shares of
the Issuer (based on 122,043,470 Ordinary Shares outstanding as of February 2, 2009, as derived
from the Issuers corporate records, and 2,200,000 Ordinary Shares underlying option held by Mr.
Ren which are deemed to be outstanding for purpose of calculating Mr. Rens ownership percentage).
Mr. Ren has been granted options to acquire 5,500,000 Ordinary Shares of the Issuer under the
Stock Incentive Plan Of such options, options to acquire 2,200,000 Ordinary Shares of the Issuer
have vested and are exercisable by Mr. Ren as of the date hereof. The remaining options to acquire
3,300,000 Ordinary Shares of the Issuer will vest in three equal installments on each of November
15, 2009, 2010 and 2011, respectively. The number of Ordinary Shares that may be deemed to be
beneficially owned by Mr. Ren includes 2,200,000 Ordinary Shares, which Mr. Ren has the right to
acquire within 60 days upon the exercise of the vested portion of the options granted to him under
the Stock Incentive Plan.
(b) Mr. Ren may be deemed to have shared voting and dispositive power over the 50,381,556
Ordinary Shares directly held by NGM. Mr. Ren may be deemed to share such voting and dispositive
power with NGM. Mr. Ren may be deemed to have sole voting and dispositive power over the 2,200,000
Ordinary Shares that Mr. Ren has the right to acquire within 60 days upon the exercise of options
granted to him under the Stock Incentive Plan.
NGMs place of organization is British Virgin Islands. NGMs principal business is investment
holding. The address of NGMs principal business and the address of its principal offices are No.
699-18 Xuan Wu Avenue, Xuan Wu District, Nanjing, Jiangsu Province 210042, The Peoples Republic of
China. To the best of Mr. Rens knowledge, during the last five years, NGM has not been convicted
in a
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CUSIP No. 82859P 10 4
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13D
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Page 6 of 8 Pages |
criminal proceeding (excluding traffic violations or similar misdemeanors) and was not a party
to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of
which was or is subject to a judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(c) Not applicable.
(d) Not applicable.
(e) Not Applicable.
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Item 6. |
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Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the
Issuer |
Mr. Ren is the controlling shareholder and Chairman of the Board of Directors of NGM, which
holds 50,381,556 Ordinary Shares of the Issuer. In connection with the grant of options by the
Issuer to Mr. Ren, Mr. Ren entered into the Stock Option Agreement with the Issuer on December 1,
2006 pursuant to the Stock Incentive Plan.
Except as set forth herein, there are no contracts, arrangements, understandings or
relationships between Mr. Ren and any other person with respect to any securities of the Issuer.
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Item 7. |
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Material to Be Filed as Exhibits |
(1) Stock Option Agreement between Mr. Ren and the Issuer
(2) Simcere Pharmaceutical Group 2006 Stock Incentive Plan (incorporated by reference to
Exhibit 10.4 from the Issuers F-1 registration statement (File No. 333-141539), as amended,
initially filed with the Commission on March 23, 2007)
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CUSIP No. 82859P 10 4
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13D
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Page 7 of 8 Pages |
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Dated: February 9, 2009
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/s/ Jinsheng Ren
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Name: |
Jinsheng Ren |
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CUSIP No. 82859P 10 4
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13D
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Page 8 of 8 Pages |
EXHIBIT INDEX
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Exhibit
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Title |
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Exhibit 1
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Stock Option Agreement between Mr. Ren and the Issuer |
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Exhibit 2
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Simcere Pharmaceutical Group 2006 Stock Incentive Plan
(incorporated by reference to Exhibit 10.4 from the Issuers F-1
registration statement (File No. 333-141539), as amended,
initially filed with the Commission on March 23, 2007) |
Exhibit 1
[ENGLISH TRANSLATION]
SIMCERE PHARMACEUTICAL GROUP
2006 STOCK INCENTIVE PLAN
NONQUALIFIED STOCK OPTION AGREEMENT
THIS AGREEMENT (the Agreement), is made effective as of the 15th day of November, 2006
(hereinafter called the Date of Grant), between Simcere Pharmaceutical Group, a corporation
incorporated in the Cayman Islands (hereinafter called the Company), and Jinsheng Ren
(hereinafter called the Participant):
R E C I T A L S:
WHEREAS, the Company has adopted the Simcere Pharmaceutical Group 2006 Stock Incentive Plan
(the Plan), which Plan is incorporated herein by reference and made a part of this Agreement.
Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and
WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its shareholders to grant the option provided for herein (the Option) to the Participant
pursuant to the Plan and the terms set forth herein.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
agree as follows:
1. Grant of the Option. The Company hereby grants to the Participant the right and
option (the Option) to purchase, on the terms and conditions hereinafter set forth, all or any
part of an aggregate of 5,500,000 Shares, subject to adjustment as set forth in the Plan. The
purchase price of the Shares subject to the Option shall be $4.2 per Share (the Option Price).
The Option is intended to be a non-qualified stock option, and is not intended to be treated as an
option that complies with Section 422 of the U.S. Internal Revenue Code of 1986, as amended.
2. Vesting.
(a) Subject to the Participants continued Employment with the Company, the Option shall vest
and become exercisable with respect to twenty percent (20%) of the Shares initially covered by the
Option on each of the first, second, third, fourth and fifth anniversaries of the Date of Grant.
At any time, the portion of the Option which has become vested and exercisable as described
above (or pursuant to Section 2(c) below) is hereinafter referred to as the Vested Portion.
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(b) If the Participants Employment with the Company is terminated for any reason, the Option
shall, to the extent not then vested, be canceled by the Company without consideration in normal
circumstances; provided however, that in special circumstances, the Board of Directors of the
Company (the Board) may, after discussion, accelerate vesting of the unvested portion of the
Option at a percentage determined by the Board. The Vested Portion of the Option shall remain
exercisable for the period set forth in Section 3(a).
(c) Notwithstanding any other provisions of this Agreement to the contrary, the Option shall,
to the extent not then vested and not previously canceled, become fully vested and exercisable
immediately prior to a Change in Control.
3. Exercise of Option.
(a) Period of Exercise. Subject to the provisions of the Plan and this Agreement, the
Participant may exercise all or any part of the Vested Portion of the Option at any time prior to
the earliest to occur of:
(i) the sixth anniversary of the Date of Grant;
(ii) one year following the date of the Participants termination of Employment due to
death or Disability;
(iii) six months following the date of the Participants termination of Employment by
the Company without Cause; and
(iv) the date of the Participants termination of Employment by the Company for
Cause or by the Participant for any reason.
For purposes of this agreement:
Cause shall mean Cause as defined in any employment agreement then in effect
between the Participant and the Company or if not defined therein or, if there shall be no
such agreement, (i) Participants engagement in misconduct which is materially injurious to
the Company or its affiliates, (ii) Participants continued failure to substantially perform
his duties to the Company, (iii) Participants repeated dishonesty in the performance of his
duties to the Company, (iv) Participants commission of an act or acts constituting any (x)
fraud against, or misappropriation or embezzlement from the Company or any of its
affiliates, (y) crime involving moral turpitude, or (z) offense that could result in a jail
sentence of at least 30 days or (v) Participants material breach of any confidentiality or
non-competition covenant entered into between the Participant and the Company. The
determination of the existence of Cause shall be made by the Committee in good faith, which
determination shall be conclusive for purposes of this Agreement; and
Disability shall mean disability as defined in any employment agreement then in
effect between the Participant and the Company or if not defined therein or if there shall
be no such agreement, as defined in the Companys long-term disability plan as in
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effect from time to time, or if there shall be no plan or if not defined therein, the
Participants becoming physically or mentally incapacitated and consequent inability for a
period of six (6) months in any twelve (12) consecutive month period to perform his duties
to the Company.
(b) Method of Exercise.
(i) Subject to Section 3(a), the Vested Portion of the Option may be exercised by
delivering to the Company at its principal office written notice of intent to so exercise;
provided that, the Option may be exercised with respect to whole Shares only. Such
notice shall specify the number of Shares for which the Option is being exercised and shall
be accompanied by payment in full of the Option Price. The payment of the Option Price may
be made at the election of the Participant (i) in cash or its equivalent (e.g., by check),
(ii) to the extent permitted by the Committee, in Shares having a Fair Market Value equal to
the aggregate Option Price for the Shares being purchased and satisfying such other
requirements as may be imposed by the Committee; provided, that such Shares have been held
by the Participant for no less than six months (or such other period as established from
time to time by the Committee in order to avoid adverse accounting treatment applying
generally accepted accounting principles), (iii) partly in cash and, to the extent permitted
by the Committee, partly in such Shares or (iv) if there is a public market for the Shares
at such time, through the delivery of irrevocable instructions to a broker to sell Shares
obtained upon the exercise of the Option and to deliver promptly to the Company an amount
out of the proceeds of such Sale equal to the aggregate option price for the Shares being
purchased. No Participant shall have any rights to dividends or other rights of a
stockholder with respect to Shares subject to an Option until the Participant has given
written notice of exercise of the Option, paid in full for such Shares and, if applicable,
has satisfied any other conditions imposed by the Committee pursuant to the Plan.
(ii) Notwithstanding any other provision of the Plan or this Agreement to the
contrary, the Option may not be exercised prior to the completion of any registration or
qualification of the Option or the Shares under applicable U.S. federal and state securities
or other laws, or under any ruling or regulation of any governmental body or national
securities exchange that the Committee shall in its sole discretion determine to be
necessary or advisable.
(iii) Upon the Companys determination that the Option has been validly exercised as
to any of the Shares, the Company shall issue certificates in the Participants name for
such Shares. However, the Company shall not be liable to the Participant for damages
relating to any delays in issuing the certificates to him, any loss of the certificates, or
any mistakes or errors in the issuance of the certificates or in the certificates
themselves.
(iv) In the event of the Participants death, the Vested Portion of the Option shall
remain exercisable by the Participants executor or administrator, or the person or persons
to whom the Participants rights under this Agreement shall pass by will or by the laws of
descent and distribution as the case may be, to the extent set forth in Section
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3(a). Any heir or legatee of the Participant shall take rights herein granted subject
to the terms and conditions hereof.
4. No Right to Continued Employment. The granting of the Option evidenced hereby and
this Agreement shall impose no obligation on the Company or any Affiliate to continue the
Employment of the Participant and shall not lessen or affect the Companys or its Affiliates right
to terminate the Employment of such Participant.
5. Legend on Certificates. The certificates representing the Shares purchased by
exercise of the Option shall be subject to such stop transfer orders and other restrictions as the
Committee may deem advisable under the Plan or the rules, regulations, and other requirements of
the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and
any applicable U.S. federal or state laws, and the Committee may cause a legend or legends to be
put on any such certificates to make appropriate reference to such restrictions.
6. Transferability. The Option may not be assigned, alienated, pledged, attached,
sold or otherwise transferred or encumbered by the Participant otherwise than by will or by the
laws of descent and distribution, and any such purported assignment, alienation, pledge,
attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or
any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment,
alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the
Option to heirs or legatees of the Participant shall be effective to bind the Company unless the
Committee shall have been furnished with written notice thereof and a copy of such evidence as the
Committee may deem necessary to establish the validity of the transfer and the acceptance by the
transferee or transferees of the terms and conditions hereof. During the Participants lifetime,
the Option is exercisable only by the Participant.
7. Withholding. The Participant may be required to pay to the Company or any
Affiliate and the Company shall have the right and is hereby authorized to withhold, any applicable
withholding taxes in respect of the Option, its exercise or any payment or transfer under or with
respect to the Option and to take such other action as may be necessary in the opinion of the
Committee to satisfy all obligations for the payment of such withholding taxes.
8. Securities Laws. Upon the acquisition of any Shares pursuant to the exercise of
the Option, the Participant will make or enter into such written representations, warranties and
agreements as the Committee may reasonably request in order to comply with applicable securities
laws or with this Agreement.
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9. Notices. Any notice necessary under this Agreement shall be addressed to the
Company in care of its Secretary at the principal executive office of the Company and to the
Participant at the address appearing in the personnel records of the Company for the Participant or
to either party at such other address as either party hereto may hereafter designate in writing to
the other. Any such notice shall be deemed effective upon receipt thereof by the addressee.
10. Choice of Law. This Agreement shall be governed by and construed in accordance
with the laws of the state of New York.
11. Option Subject to Plan. By entering into this Agreement the Participant agrees
and acknowledges that the Participant has received and read a copy of the Plan. The Option is
subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time,
are hereby incorporated herein by reference. In the event of a conflict between any term or
provision contained herein and a term or provision of the Plan, the applicable terms and provisions
of the Plan will govern and prevail.
12. Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.
[Signatures on next page.]
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Simcere Pharmaceutical Group
(Seal of Simcere Pharmaceutical Group)
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/s/ Haibo Qian
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By: Haibo Qian |
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Its: Secretary to the Board of Directors |
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Participant
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/s/ Jinsheng Ren
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Name: |
Jinsheng Ren |
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