Temasek-backed firms buy stake in VIVA Biotech unit ahead of listing

VIVA Biotech Holdings

12/06/2023 04:43

June 12 (Reuters) - Entities backed by Singapore's
Temasek and Chinese investment firm HighLight Capital agreed to
a deal worth 1.06 billion yuan ($148.7 million) for stakes in a
unit of VIVA Biotech Holdings  1873.HK , the pharmaceutical
service company said late on Sunday.
    The deal, which will dilute VIVA Biotech's stake in VIVA
Shanghai to about 75.79% from 100%, comes as the Chinese drug
discovery and manufacturing service provider plans to
restructure its businesses and list the Shanghai firm on a
onshore stock exchange. 
    VIVA Biotech said it will use the net proceeds to redeem
convertible bonds in a bid "to settle its outstanding
liabilities without occupying its internal resources."
    The deal included capital injection into VIVA Shanghai by
new investors and sale of existing interest in VIVA Shanghai
from Viva Investment, another unit of VIVA Biotech, the filing
showed. 
    Daxue Investments, a unit of Temasek Holdings, and True
Light P, a private firm held by Temasek-owned True Light Capital
GP Pte. Ltd, will altogether hold 17.55% stake in VIVA Shanghai
after the deal, according the filing. 
    HLC SPV and Qingdao Hongyi, both linked to HighLight
Capital, will obtain a total of 6.66% stake from the
transaction. 
    VIVA Biotech has initiated a restructuring which will
transfer all assets and personnel related to its early-stage
drug discovery business to VIVA Shanghai, and move out of the
Shanghai unit any assets and personnel related to drug
development and manufacturing service, the filing showed. 
    Investors in the deal expect application for VIVA Shanghai's
initial public offering to be filed by June 30, 2024, said the
filing. 
     
 
($1 = 7.1273 Chinese yuan renminbi)

 (Reporting by Roxanne Liu and Kane Wu; Editing by Stephen
Coates)
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