23 Nov 2012 08:55
Cathay International Holdings Limited
("Cathay" or the "Company")
1.5% holding in Zhejiang Starry Pharmaceutical Co., Ltd. ("Starry")
Hong Kong, 23 November 2012 - Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China ("PRC"), today announces that on 23 November 2012, its wholly-owned subsidiary, Cathay International Capital Limited ("CIC"), agreed to transfer its 1.5% indirect holding in Starry to Horizon Network Limited ("Horizon Network"), a wholly-owned subsidiary of Lansen Pharmaceutical Holdings Limited ("Lansen") (the "Transaction"). At completion of the Transaction, Lansen will increase its indirect holding in Starry from 20% to 21.5%. Starry will continue to be treated as an associated company of Cathay, by virtue of Cathay's majority holding in Lansen, and its future results will be accounted for accordingly.
The aggregate cash consideration receivable at completion of the Transaction is RMB13.68million (approximately US$2.19m). The consideration was determined after arm's length negotiations between CIC and Horizon Network with reference to an independent professional valuation. Completion shall take place on or before 30 November 2012.
The Transaction provides the benefit of streamlining Cathay's holding in Starry. The Board believes that the Transaction will create managerial and operational synergies within the Cathay group relying on the experience of Lansen in production management in the pharmaceutical sector.
The Board considers that the terms and conditions of the Transaction are on normal commercial terms and the Transaction is in the best interests of the Cathay group and Cathay's shareholders.
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited Eric Siu (Finance Director) Patrick Sung (Director and Controller) |
Tel: +852 2828 9289 |
M:Communications Mary-Jane Elliott / Amber Bielecka / Claire Dickinson |
Tel: +44 (0)20 7920 2330 |
About Cathay
Cathay International Holdings Limited (LSE: CTI.L), focused on the People's Republic of China ("PRC"), is an investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China ("PRC"). The Cathay group employs more than 2,000 people across the PRC, including over 30 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen.
Cathay aims to identify investment opportunities with emphasis on high growth healthcare markets and build them into market sector leaders, with a clear exit strategy. Cathay has demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: the Lansen group, China's leading specialty pharmaceutical company focused on rheumatology, and the Haotian group, a company engaged in the manufacture, marketing and sale of key active ingredients for healthcare products, including inositol. To complement its healthcare portfolio, Cathay has a research and product development business focused on bringing new products to the growing Chinese market.
Cathay also has a private equity investment arm focused on minority investment opportunities and a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk.
About Lansen
Cathay owns a 50.56% majority interest in Lansen. Lansen is a leading pharmaceutical company in China which focuses on the rheumatic specialty prescription western pharmaceuticals for the treatment of autoimmune rheumatic diseases. Founded in 2002, the Lansen group is engaged in the manufacture, distribution and development of rheumatic drugs, with a leading position in the disease-modifying anti-rheumatic drugs ("DMARDs") market in the PRC. In addition to 13 non-core medical products, the Lansen group has three rheumatic specialty prescription western pharmaceuticals as its core products, of which Pafulin and Tuoshu rank the first and the fourth respectively in terms of DMARDs' market share. The Lansen group has established an extensive distribution network, covering more than 1,000 hospitals in 25 provinces and four municipal cities. The headquarters for production and administration is located in Ningbo, Zhejiang Province, the PRC, with modern production facilities occupying an area of 64,000 square meters. Apart from the Chinese Government's GSP certification, the Lansen group's operating facilities are GMP-certified by the State Food and Drug Administration and adhere to stringent and closely monitored quality assurance and safety control processes.
About Starry
Starry is a sino-foreign equity joint venture limited company established under the laws of the PRC, specializing in the production of bulk pharmaceuticals and intermediates. The two core bulk pharmaceutical products of Starry are iohexol for X-CT non-ionic contrast agents and levofloxacin for antibiotics. Starry is the largest iohexol manufacturer in the PRC and is experienced in the production management and quality control of bulk pharmaceuticals.