State-owned Sinopharm is leading a consortium making a HKD15.6 billion (USD2 billion) take-private offer to China Traditional Chinese Medicine Holdings (China-TMC).
If successful, the deal will be the largest privatisation for a Hong Kong-listed company since Haier Electronics’ HKD43.5 billion delisting in 2020.
Haiwen & Partners, with partners Wu Zuolong and Lin Xixiang, is providing advice on Hong Kong and PRC law, respectively, to the China State-Owned Enterprise Mixed Ownership Reform Fund, a member of the consortium.
The State-owned Assets Supervision and Administration Commission manages the RMB200 billion fund.
Clifford Chance partner Tommy Tam has acted on offeror’s financial adviser CITIC Securities.
The acquiring consortium also includes Sinopharm Group Hongkong, the Future Industry Investment Fund II, China Reform Development Investment, Chongqing Fuling Industrial Development Group, and Red Investment.
Sinopharm, as the controlling stakeholder of China-TCM, has proposed HKD4.6 per share to acquire the pharmaceutical manufacturer by a scheme of arrangement.
China-TCM said its share price was undervalued and limited trading activity had suppressed the financing.
The privatisation would streamline the company’s structure and improve management efficiency, said China-TCM.
