State conglomerate China Resources is in early-stage talks with Sihuan Pharmaceutical’s chairman about jointly taking the Hong Kong-listed company private in a deal valuing it at nearly $3 billion, two people with knowledge of the matter said, reports Reuters. Sihuan is attractive to China Resources (Holdings) Co Ltd, they said, due to sharp growth for its medical aesthetics business after the company became the exclusive distributor in China for Letybo, a botox product made by South Korea’s Hugel.
China Resources and Che Fengsheng, Sihuan’s chairman and largest shareholder, are considering offering HK$2.5 ($0.32) per share, the people said. That represents a premium of more than 60% to the firm’s average share price over the past three months of HK$1.53.
But just how much China Resources and Che would each own if the deal went ahead has yet to be determined, they added.
You must log in to post a comment.