Hony Capital To Collect $528M From CSPC Pharma Sell-Down

Beijing-based Chinese private equity firm Hony Capital is to sell exit 650 million shares of Hong Kong-listed Chinese generic drugs maker CSPC Pharmaceutical Group Limited. for HK$6.30 apiece, in another exit from the company that will net Hony a total of HK$4.1 billion (US$528 million), according to CSPC’s official statement.

The share sell-down equals to about 11% of the company’s total issued shares. After the completion of the transaction, Hony’s stake in CSPC will drop to 51.25% from 62.26%.

In May, Hony sold shares in a partial exit that raised a total of HK$4.41 billion (US$570 million), selling 705.88 million shares.

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

Hony invested in CSPC in 2007, reportedly for only RMB870 million (US$114.5 million).

Founded in 1997, China Shijiazhuang Pharmaceutical Group Co., Ltd. (CSPC) is the first mega pharmaceutical enterprise jointly established by big pharmaceutical enterprises in the medicine industry of China.

CSPC Pharma currently has RMB11.5 billion assets in total, and about 20,000 employees.