Berry Genomics, a China-based genetic testing service provider backed by conglomerate Legend Holdings, is set to go public through a reverse merger with auto parts producer Chengdu Tianxing Instrument & Meter, China Money Network reported yesterday.
Shenzhen-listed Tianxing will acquire Berry in an all-share deal that will involve it issuing $619m worth of new shares.
Founded by former employees of DNA testing company Beijing Genomics Institute in 2010, Berry offers a range of genetic screening services including prenatal DNA screening, DNA sequencing and genetic screening and diagnosis of diseases.
Legend Capital, which invests as Legend Holdings’ corporate venturing arm, supplied Berry with an undisclosed amount of funding in 2011 before returning two years later for a series B round, also of undisclosed size, which included Qiming Venture Partners and Boyu Capital.
The proposed merger was first announced in June this year and Tianxing’s stock was suspended due to the prospect of ‘major restructuring transactions’. Trading resumed on Monday only to be once again halted after its shares reached the ceiling of the permitted trading range.
Tianxing had answered questions from Chinese regulators over the weekend, after revealing additional details of the proposed deal earlier this month.