Morgan Stanley PE Asia makes partial exit from Sihuan Pharma

According to a regulatory filing, MSPEA has agreed to place 100 million shares - reducing its stake from 7.17% to 5.24%. Majority shareholder Plenty Gold - which is controlled by Fengsheng Che, Sihuan's chairman and CEO, among others - will offload 250 million shares, reducing its stake from 53.09% to 48.24%.

Sihuan shares closed at HK$5.75 on Monday before dropping 10% during morning trading on Tuesday following the announcement of the sale. Based on current market prices, MSPEA's remaining holding is worth HK$1.4 billion ($180 million).

Sihuan was listed on the Singapore stock exchange when MSPEA took a 10% stake in the company in 2009 as part of a $458 million take-private deal executed jointly with the firm's management.

Sihuan then relisted on the Hong Kong Stock Exchange a year later through a $741 million IPO, with MSPEA reducing its 10% stake to 7.5%.

Set up in 2001, Sihuan is now China's ninth biggest pharmaceutical company in the country's prescription drug market. The firm recorded RMB3 billion ($490 million) of revenue for 2012, up 35.7% year-on-year. Operating profit for the year came to RMB1 billion, compared to RMB990 million in 2011.

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• Topics
• Exits
• Greater China
• Healthcare
• Exit
• healthcare
• Pharmaceuticals
• China
• Morgan Stanley Private Equity Asia