Hony Capital Completes $570M Partial Exit From CSPC Pharma

Beijing-headquartered Chinese private equity firm Hony Capital has completed a partial exit from Hong Kong-listed Chinese generic drugs maker CSPC Pharmaceutical Group, selling 705.88 million shares for a total proceeds of HK$4.41 billion (US$570 million), according to a regulatory filing.

Hony Capital unloaded 600 million CSPC shares to other third-party investors and 105.88 million shares to an entity owned by CSPC’s chairman, Cai Dongchen, at HK$6.25 per share. The selling price represents a 7.1% discount to the company’s last closing price of HK$6.73.

After the completion of the sale, Hony’s stake in CSPC is lowered to 62.26% from 74.2%.

Last October, Hony sold a 13.07% stake of CSPC for US$260 million, following a previous sale down of US$155 million last April.

With production facilities in Shijiazhuang, Hebei Province, CSPC was listed on the Hong Kong Stock Exchange in 1994. The company produces blockbuster drugs including the "NBP" series, "Oulaining" series and "Xuanning" series.

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