23 Jul 2020 09:50
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
Cathay International Holdings Limited ("Cathay" or the "Company")
Disposal of Starry Shares
Hong Kong, 23 July 2020 - Cathay International Holdings Limited (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People's Republic of China, announces that further to the approvals granted by Cathay's shareholders on 15 May 2020 and by the shareholders of its subsidiary, Lansen Pharmaceutical Holdings Limited (Lansen) (HKEX: 503), on 13 July 2020, Lansen has further disposed on-market of an aggregate of 424,000 shares in Zheijang Starry Pharmaceutical Co., Ltd (Starry) at the price of RMB 78.10 per Starry Shares on 23 July 2020. The selling price of RMB 78.10 represented 6 per cent discount to the closing price of Starry Shares on the Shanghai Stock Exchange on 22 July 2020.
The gross sale proceeds of disposal were approximately RMB33.11 million and, after deducting transaction costs and related tax, expected to be approximately RMB31.18 million (approximately US$4.46 million). Lansen is expected to recognise a net gain of approximately USD 3.96 million, of which USD 2.09 million is attributable to Cathay. The above-mentioned US$ amounts are converted based on the exchange rate of US$1=RMB6.9921, and the actual exchange rate used in conversion may be different.
As at the date of this announcement after the disposal of Starry Shares, 4,718,855 Shares are owned by the Lansen group (representing approximately 2.01% in Starry), which value will be subject to market price fluctuations.
The full text of the Lansen Announcement can be found at https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0723/2020072300458.pdf and will also be made available at the Announcements & Notices section of Lansen's homepage at http://holding.lansen.com.cn/en/newslist.aspx?NodeCode=10002000700050005.
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For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director) Tel: +852 2828 9289
Patrick Sung (Director and Controller)
SPARK Advisory Partners Limited (sponsor)
Andrew Emmott / James Keeshan Tel: +44 (0) 20 3368 3555
About Cathay
Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and an operator and investor in the healthcare sector in the People's Republic of China (the "PRC"). The Company and its subsidiaries (collectively the "Group") aim to leverage on investment opportunities in the growing domestic demand for high quality healthcare products in the PRC and build portfolio companies into market sector leaders with competitive edge. Cathay has already demonstrated a track record of identifying investment opportunities in this area including: Lansen, a leading specialty pharmaceutical company focused on rheumatology and dermatology in the PRC; Haizi, a company engaged in the manufacture, marketing and sale of inositol and its by-products; Natural Dailyhealth, a company engaged in production and sales of plant extracts for use as key active ingredients in healthcare products; and Botai, a company engaged in collagen products.
The Group employs approximately 1,300 people across the PRC, including over 20 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen. Cathay also has a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk.
About Lansen
Lansen, whose shares are listed on the main board of the Hong Kong Stock Exchange, is a 52.83% owned subsidiary of Cathay. Lansen is engaged in the manufacture, distribution and development of specialty prescription drugs for treatment of autoimmune disorder in rheumatology and dermatology. Lansen has established an extensive distribution network, covering more than 1,500 hospitals in four municipalities, 22 provinces and cities in the PRC. For more information please visit the Lansen's website: www.lansen.com.cn/en/index.aspx.
About Starry
Starry, whose shares are listed on the Shanghai Stock Exchange (stock code: 603520). Starry is specialised in the research and development, manufacture, marketing and sales of bulk pharmaceuticals and intermediates. One of the core products of Starry is iohexol for X-CT non-ionic contrast agents. Starry is the largest generic drug manufacturer of iohexol's active pharmaceutical ingredients in the PRC and is experienced in the production management and quality control of bulk pharmaceuticals. For more information please visit Starry's website: www.starrypharm.com