The affiliates of Hony Capital Ltd have sought to raise USD260 million through the sale of shares in CSPC Pharmaceutical Group Ltd. This was indicated in documents for the transaction.
Two firms, namely Jinling Investment Ltd and Joyful Horizon Ltd, have offered 500 million shares in CSPC for a price between HKD4.04 and HKD4.10 per share according to a term sheet obtained by Bloomberg News. CSPC is a manufacturer of vitamins and generic drug products based out of China. The trading of the stock was halted today pending a confirmation of the share sale but closed at HKD4.35 per share in the Hong Kong bourse yesterday.
Arranging the transaction is Morgan Stanley according to the term sheet. Hony spokesperson Victoria Li did not immediately return a call seeking a comment on the transaction.
For its part, CSPC shares increased 95% in 2013. The pharmaceutical firm had generated 71% of its revenues from the Chinese market while 11% came from the US market, according to data obtained by Bloomberg.
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