China's Creat Group Corp. is eyeing to acquire Germany's blood plasma products maker Biotest for $1.3 billion including debt.

"The Board of Management and Supervisory Board welcome the discussions," Biotest said. It further noted that Biotest will back an ongoing investment that aims a more than double output capacity by 2022.

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Bernhard Ehmer, Biotest's Chief Executive, on Thursday said that although Creat is not Biotest's only suitor, it chose to talk to Creat because its proposal was "through through." An insider with knowledge of the matter also said that Biotest is not currently in talks with other possible interested parties.

According to Biotest, Creat has proposed certain key parameters of a potential combination to be implemented through a public tender offer for all common and preference shares of Biotest. It indicated a buying price of 28.50 euros ($30.46) per ordinary share, while holders of preference shares without voting rights would only be offered 19 euros ($20.30), according to Reuters.

Should the deal push through, Creat intends to retain Biotest's headquarters and corporate seat in Dreieich, Germany. Biotest's corporate name, brand, and product names will also remain unchanged. Creat also plans to develop the company based on the current management business plan and follow the current shop and collective bargaining agreements and employee co-determination. The Pharma Letter noted that such business would be agreed with a business combination agreement with a five-year term.

However, the potential deal is still subject to final negotiations and an agreement with OGEL, Biotest's major shareholder holding slightly more than half of the company's ordinary shares with voting rights.

Biotest said it has postponed its scheduled annual shareholder meeting to a later date because of the ongoing talks. The company's share capital is evenly split between ordinary and preference shares. And the preference shares are completely in free-float ownership.

Biotest sells products used to treat blood coagulation disorders, auto-immune diseases, and immune deficiencies.