Hony completes $569m sell down of CSPC Pharma

Hony-owned Joyful Horizon sold 600 million shares in CSPC to third parties and 105.88 million shares to an entity owned by Dongchen Cai, the company's chairman, at HK$6.25 apiece, according to a regulatory filing. The selling price represents a 7.1% discount to the last closing price of HK$6.73.

As a result, the private equity firm's stake in the business has fallen to 62.26% from 74.2%.

Hony bought parent company China Shijiazhuang Pharmaceutical Group from the State-owned Assets Supervision and Administration Commission of Shijiazhuang municipal government for RMB870 million in 2007. It also indirectly owned a 59.03% stake in Hong Kong subsidiary China Pharmaceutical Group.

The investment came from Hony Capital Fund III, which closed at $580 million in 2006.

It is an example of a state-owned enterprise (SOE) restructuring, which are readily associated with Hony. Post-restructuring, the listed entity was renamed CSRC Pharmaceutical and Hony has now made three partial exits from the business in the last 13 months via sell downs or block trades. 

In October last year, the private equity firm sold a 13.07% stake in CSPC for $260 million. This followed a $155 million exit in April.

Located in Shijiazhuang, CSPC produces blockbuster drugs used for treating cardiovascular and cerebrovascular conditions, as well as antibiotics and vitamin products. The Hong Kong-listed entity reported revenues of HK$9.9 billion and profit of HK$973 million in 2013.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Exits
• Healthcare
• China
• Hony Capital
• healthcare
• Exit
• Hong Kong (China)