Reuters reveals Sinopharm-led consortium plans $3.3 billion take-private of HK-listed China TCM; market reacts | Reuters News Agency
Business & FinanceDeals

Reuters reveals Sinopharm-led consortium plans $3.3 billion take-private of HK-listed China TCM; market reacts

Reuters exclusively reported that a consortium led by state-owned pharma giant Sinopharm plans to take the Hong Kong-listed company private in a deal that would value the firm at at least $3.3 billion. Sources told Reuters that the consortium plans to offer at least HK$5.10 ($0.66) per share for China TCM, a premium of about 33% to the average share price over the past month of HK$3.83. The move comes as China TCM has lagged a surge in valuations for many mainland-listed Chinese traditional medicine firms during the COVID-19 pandemic, driven by a belief that some formulations can prevent the disease. 

Market Impact

Shares in China Traditional Chinese Medicine Holdings rose nearly 8% to their highest level in more than 6 months, before trading in the stock was halted.



Article Tags
Topics of Interest: Business & FinanceDeals
Type: Reuters Best
Sectors: Equities
Regions: Asia
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Sinopharm
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