Exclusive: Sinopharm-led consortium plans $3.3 billion take-private of HK-listed China TCM - sources - (Fidelity via NewsPoints Desk)

  • According to two people with knowledge of the matter, a consortium led by Sinopharm plans to take private China Traditional Chinese Medicine (China TCM) in a deal that would value the firm at $3.3 billion at a minimum, as reported in Fidelity.

  • The sources suggested that Sinopharm, China TCM's parent and major shareholder, is teaming up with the next two biggest stockholders, Ping An Insurance Group Co of China and executive director Wang Xiaochun, with the three holding a combined stake of 49.4%.

  • Specifically, the people said Sinopharm plans to offer at least HK$5.10 per share for China TCM, a premium of about 33% to the average share price over the past month.

  • The Sinopharm-led consortium aims to eventually list China TCM on the mainland bourse to take advantage of higher valuations there, one of the sources said.

  • Headquartered in the Chinese city of Foshan, China TCM is the core platform established by Sinopharm for the traditional Chinese medicine segment.

  • It has over 16,000 employees and more than 1300 patent medicine regulations, according to its website.

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