Sinopharm offers to take China-TCM private in nearly $3 bln deal (updated)

China Traditional Chinese Medicine Holdings Co

21/02/2024 12:42

(Updates with offer details and background)
       Feb 21 (Reuters) - Sinopharm, the parent of China
Traditional Chinese Medicine Holdings  0570.HK , has revived a
take-private bid for the Hong-Kong-listed drugmaker, valuing it
at HK$23.16 billion ($2.96 billion), the companies said on
Wednesday. 
    China National Pharmaceutical, also known as Sinopharm, had
in 2021 decided against a possible privatisation of China TCM. 
    The state-backed firm already holds a 32.46% stake in
China-TCM and has offered to pay HK$4.6 per share in cash to
buyout the drugmaker.
    The offer price represents a 34.11% premium to the
traditional medicine maker's closing price of HK$3.43 per share
before trading in the stock was halted.
    Sinopharm has also indicated it will not raise the offer
price to take China-TCM private.

($1 = 7.8215 Hong Kong dollars)

 (Reporting by Rishav Chatterjee in Bengalurul; Editing by Arun
Koyyur)
 ((Rishav.Chatterjee@thomsonreuters.com;))