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

VIVA Biotech Holdings

12/06/2023 05:48

(Adds VIVA Biotech's convertible bond issance, share prices)
       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 an
onshore stock exchange. 
    VIVA Biotech said it will use the proceeds to redeem
convertible bonds, which will help it 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 the Shanghai
firm, the filing showed. 
    Daxue Investments, Temasek Holdings' indirect unit, and True
Light P, 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's restructuring will transfer all assets and
personnel related to its early-stage drug discovery business to
VIVA Shanghai, and move out of the Shanghai unit those related
to drug development and manufacturing service, the filing
showed. 
    Investors in the deal expect application for VIVA Shanghai's
listing to be filed by June 30, 2024, said the filing. 
    VIVA Biotech said on Sunday in a separate filing it is
issuing a total of HK$470 million ($60 million) worth of new
convertible bonds to HLC SPV and Temasek-backed Huangshan
Investments and True Light H, with proceeds set to fund the
restructuring plan. 
    Shares of VIVA Biotech Holdings on Monday fell as much as
16.8% to HK$1.58, their lowest since June 5. 
 
($1 = 7.1273 Chinese yuan renminbi)
($1 = 7.8392 Hong Kong dollars)

 (Reporting by Roxanne Liu and Kane Wu; additional reporting by
Donny Kwok; Editing by Stephen Coates)
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