Sinopharm's second Chinese herb shot is potent

China Traditional Chinese Medicine Holdings Co

08/12/2022 03:26

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Robyn Mak
       HONG KONG, Dec 8 (Reuters Breakingviews) - The pharma
giant may revive a $4 bln buyout of its Hong Kong-listed
traditional medicine arm. Valuations for rivals on the mainland
have risen in the two years since the last try. A growing
disconnect between the markets allows for a bigger premium and a
lucrative relisting.
    Full view will be published shortly.
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    CONTEXT NEWS
    Sinopharm is considering reviving a bid for China
Traditional Chinese Medicine Holdings, Bloomberg reported on
Dec. 7, citing people familiar with the matter.
    Sinopharm, which owns 32% of China TCM, may offer HK$6 a
share to buy the rest of the company it does not already own, a
59% premium to the stock's closing price on Dec. 7. That would
value the China TCM's equity at HK$30.2 billion ($3.9 billion).
    In January 2021, Reuters reported that a consortium led by
Sinopharm planned to take China TCM private. In August the same
year, China TCM announced Sinopharm had decided not to proceed
with a deal. 
    China TCM's stock rose 20% to HK$4.52 on Dec. 8, and
Sinopharm's rose 1.5% to HK$20.30.
 (Editing by Una Galani and Thomas Shum)
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