Simcere Pharmaceutical Group (NYSE: SCR) has received a buyout offer from the chairman of its board of directors for about $500 million.

The offer works out to $9.56 per American Depository Share and $4.78 per ordinary share in cash. The company's shares closed at $7.96 before the deal was announced, and were trading at around $9.15 the morning the transaction was disclosed.

Jinsheng Ren, the chairman of the board, with New Good Management Ltd. and Assure Ahead Investments Ltd., would take Simcere private. New Good Management is a company formed by Ren, which has a stake in the company. Assure Ahead also owns percent stake in Simcere, according to U.S. Securities and Exchange Commission filings, as does Ren.

Simcere’s board of directors has formed a special committee to consider the deal.

Simcere manufactures and distributes medication in China. In January, the company announced it would sell its 35 percent stake in Shanghai Celgen Bio-Pharmaceutical Co. Ltd. to 

Restructuring