Hong Kong-based Winteam Pharmaceutical Group (0570.HKG) will buy the mainland’s Tongjitang Chinese Medicine for US$393 million, Bloomberg reported, citing stock exchange documents filed on Friday. Winteam, which makes drugs on the mainland, will change its name to China Traditional Chinese Medicine to reflect the new scope of its operations, pending shareholder approval. To help pay for the deal, Winteam will issue 416.5 million new shares at HK$3.10 and take on US$44.7 million in debt. The company’s stock will resume trading today after being suspended on May 10 ahead of the acquisition announcement and has gained 139% so far this year.
Categories