67% stake in Tianjin Zhong Xin's controlling shareholder to be acquired for an undisclosed sum

TIANJIN Zhong Xin Pharmaceutical Group announced on Sunday that Jinhushen Biological Medical Science and Technology will be acquiring a 67 per cent stake in its controlling shareholder Tianjin Pharmaceutical Holdings for an undisclosed sum.

As at Dec 20, Tianjin Pharmaceutical Holdings holds 42.8 per cent of the total number of issued shares of Tianjin Zhong Zin.

This comes as Tianjin Pharmaceutical Holdings' owner, Tianjin Bohai State-owned Assets Management, is transferring 67 per cent of its stake in Tianjin Pharmaceutical Holdings via a public tender for sale, as part of a drive in China to reform the state-owned enterprise. Jinhushen Biological Medical Science and Technology was the only successful bidder.

Shareholders of Jinhushen Biological Medical Science and Technology are Liuliguang Medical Development Co, Shenzhen Qianhai Furong Asset Management Co, Shenzhen Ruice Biological Medical Development Co and Hainan Special Economic Zone Yousheng Enterprise Management Limited Partnership. They hold 35 per cent, 34 per cent, 16 per cent and 15 per cent equity interest respectively.

With the acquisition, the Securities Industry Council of Singapore confirmed that any person which acquires statutory control of Tianjin Pharmaceutical Holdings will be required to make an offer for shares not held by such person and its concert parties.

A mandatory cash offer - known as the S Offer Shares - will be required for shares listed on the Singapore Exchange not already held by offeror Tianjin Pharmaceutical Singapore International Investment and Tianjin Pharmaceutical Holdings. A separate mandatory cash offer, or the A Offer Shares, will also be made for shares listed on the Shanghai Stock Exchange.

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The chain offers will not be made unless and until the acquisition is completed, and the chain offer condition is satisfied or waived.

Last week, the group's share price surge prompted a query from the Singapore Exchange. The counter hit an intraday high of US$1.10 before easing slightly to US$1.05, up 11.7 per cent or US$0.11 before the midday break.

It continued its upward trajectory in the afternoon, rising US$0.13 or 13.8 per cent to US$1.07 as at 2.41pm, with some 5.3 million shares changing hands. Tianjin Zhong Xin later called for a trading halt.