MSPEA makes another partial exit from Sihuan Pharma

The PE firm, which supported management in a privatization of Singapore-listed Sihuan in 2009 before re-listing the business in Hong Kong the following year, sold 120 million shares at HK$9.36 apiece.

Last September, MSPEA joined company management in selling a 6.8% stake in Sihuan. This saw the PE firm's stake fall from 7.17% to 5.24%. The most recent sale leaves MSPEA with around 2.92%. Based on current market prices - Sihuan's stock has dropped more than 7% since news of the trade emerged - this holding is worth approximately HK$1.37 billion.

MSPEA took a 10% stake in the company as part of the $458 million take-private deal. When the business re-listed in Hong Kong, raising $741 million, the PE firm trimmed its holding to 7.5%.

Set up in 2001, Sihuan has grown into the third-biggest player in China's prescription drug market and the largest cardio-cerebral vascular prescription drug franchise. It reported a net profit of RMB1.3 billion ($209 million) in 2013, up from RMB921.5 million the previous year. Revenue came to RMB4.7 billion, up 55.6% year-on-year.

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