Private equity firm TPG Capital backed a consortium of buyers as part of a deal that would see ShangPharma Corp. (NYSE: SHP) be taken private for $173 million.

Through its life science venture investment arm TPG Biotech, the San Francisco firm has teamed with ChemExplorer Investment Holdings Ltd., ChemPartner Investment Holdings Ltd., Joint Benefit Group Ltd. and Han Ming Tech Investment Ltd. to purchase ShangPharma for 50 cents per share.

The offer represents a 30.8 percent premium over the closing price of $6.88 per share on July 5, the last trading day prior to the Shanghai company's announcement that it had received a "going private" proposal.

Investment adviser J.P. Morgan Securities (Asia Pacific) Ltd. managed the assignment, while O'Melveny and Myers LLP and Ropes & Gray LLP served as U.S. legal advisers.

Skadden Arps Slate Meagher & Flom LLP handled legal matters for the target.