Oil

Sinopharm offers to take China-TCM private in nearly $3 bln deal

Credit: REUTERS/Fabrizio Bensch

Updates with offer details and background

Feb 21 (Reuters) - Sinopharm, the parent of China Traditional Chinese Medicine Holdings 0570.HK, has revived a take-private bid for the Hong-Kong-listed drugmaker, valuing it at HK$23.16 billion ($2.96 billion), the companies said on Wednesday.

China National Pharmaceutical, also known as Sinopharm, had in 2021 decided against a possible privatisation of China TCM.

The state-backed firm already holds a 32.46% stake in China-TCM and has offered to pay HK$4.6 per share in cash to buyout the drugmaker.

The offer price represents a 34.11% premium to the traditional medicine maker's closing price of HK$3.43 per share before trading in the stock was halted.

Sinopharm has also indicated it will not raise the offer price to take China-TCM private.

($1 = 7.8215 Hong Kong dollars)

(Reporting by Rishav Chatterjee in Bengalurul; Editing by Arun Koyyur)

((Rishav.Chatterjee@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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