Sinopharm inhales invigorating Chinese herbs

China Traditional Chinese Medicine Holdings Co

28/01/2021 02:11

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Robyn Mak
    HONG KONG, Jan 28 (Reuters Breakingviews) - The pharma giant
is planning to take Hong Kong-listed China Traditional Chinese
Medicine private in a $3.3 bln deal. The market's growth, high
margins and political support justify the premium. Relisting on
the mainland at a richer valuation will be good for
shareholders’ health.
    Full view will be published shortly.
    On Twitter https://twitter.com/mak_robyn
    
    CONTEXT NEWS
    - China's Sinopharm is leading a consortium to take private
Hong Kong-listed China Traditional Medicine Holdings in a deal
that would value the firm at $3.3 billion at least, Reuters
reported on Jan. 27, citing people familiar with the matter.
    - Sinopharm, which already owns a 32% stake in China TCM, is
teaming up with the next two biggest stockholders. The
consortium will offer at least HK$5.10 per share, a 27% premium
to the undisturbed price on Jan. 26.
    - Following the news, shares of Sinopharm closed up 5.2% to
HK$19.88 on Jan. 27. Shares of China TCM closed up 6.7% to
HK$4.30.
    - For previous columns by the author, Reuters customers can
click on  MAK/   
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Sinopharm-led consortium plans $3.3 bln take-private of
HK-listed China TCM -sources     urn:newsml:reuters.com:*:nL8N2K12G1
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Pete Sweeney and Sharon Lam)
 ((robyn.mak@thomsonreuters.com; Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))