News Column

Lenovo May Withdraw from CSPC

May 28, 2014

HONGKONG, May 28, SinoCast -- CSPC Pharmaceutical Group Limited (SEHK: 1093) announced on May 27 that its major shareholder Joyful Horizon sold an 11.95% stake or 706 million shares in the former at HKD 6.25 per share, a discount of 7.1% over the closing price of HKD 6.73 a share on May 26.

CSPC is known as one of big four in the production capacity of vitamin C, but its performance is not good in recent years due to the depressed vitamin C market.

Joyful Horizon is a wholly-owned subsidiary of Legend Holding's grandson subsidiary Massive Top Limited (MTL) that is operated by private equity fund Hony Capital. MTL's holding in CSPC had dropped to 74.2% before the share sale and 62.26% after the move.

Calculated at the share sale price, Hony was expected to cash HKD 4.4 billion from the move and a person in charge of Hony declined to comment if the company will fully withdraw from CSPC.

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Source: Sinocast Health Care & Medicine Beat (China)

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