TRAD CHI MED (00570.HK) experienced a significant surge in its stock price upon resumption, reaching a peak of $4.32, up 25.95%. This surge was triggered by a proposal from Sinopharm Common Wealth to privatize the company at a cash price of $4.6 per share, representing a premium of 34.11% over the pre-suspension closing price. The proposed privatization involves approximately $15.65 billion. Sinopharm holds a 55.11% equity interest in the Offeror, while the Offeror and parties acting in concert with it hold 33.13% of TRAD CHI MED's share capital [d13df200].
Shanghai Henlius Biotech shares also experienced a surge after Fosun Pharma offered HK$5.4 billion (US$690 million) to privatize the company. Fosun Pharma, the pharmaceutical arm of Chinese conglomerate Fosun International, will pay HK$24.60 per H share and 22.44 yuan per unlisted share. The offer represents a premium of 36.7% over Monday’s closing price of HK$18. Henlius develops biologic medicines with a focus on oncology, autoimmune diseases, and eye disorders. The company reported a 67.8% jump in revenue to 5.34 billion yuan and net earnings of 546 million yuan in 2023. Henlius's stock price has slid 42% in 2022 and 52% in 2021. The current price is still 55% lower than the IPO price of HK$49.60. The merger will allow Henlius to focus on its core business and operations without distractions from share price fluctuations. A wave of companies has left Hong Kong's stock market this year due to undervaluation.
The founding Chan family of HELP University has repurchased a controlling stake in the company from Southern Capital. The family's private vehicle, CL Heritage Sdn Bhd, now holds a 70% stake in the subsidiaries of HELP International Corp Bhd (HIC), with the remaining 20% and 10% stakes held by two other shareholders. The acquisition was made for RM200 million, with an additional debt of around RM100 million. The family plans to complete the Subang campus with an investment of RM120 million. They are considering relisting HIC through an IPO by 2026 to fund further expansion. HELP's tertiary education currently has a student population of about 6,000, and the group's international schools for K12 segment have between 3,000 and 4,000 students. The family is also looking to expand its international school footprint into Thailand [e6b5a63b].
It is important to note that this analysis is based on the information available at the time of publication and does not constitute financial advice. Investors should carefully consider their own investment objectives and seek professional advice before making any investment decisions.