Cathay International Holdings Ld Update re Natural Dailyhealth (0595D)
June 21 2019 - 6:56AM
UK Regulatory
TIDMCTI
RNS Number : 0595D
Cathay International Holdings Ld
21 June 2019
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")
Update re Extension of exercise period of the put option to
repurchase shares in Natural Dailyhealth
Hong Kong, 21 June 2019 - 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 it has
been informed by Lansen Pharmaceutical Holdings Ltd ("Lansen",
incorporated in the Cayman Islands) (HKEX:503), in which the
Company has a 51.59% shareholding, that it will not exercise the
put option ("Put Option") held by Lansen's wholly owned subsidiary,
Lansen Pharmaceutical Holdings Limited (incorporated in the British
Virgin Islands) (the "Subscriber"), over its 30% shareholding in
Natural Dailyhealth Holdings Limited ("Natural Dailyhealth") and
will continue to hold Natural Dailyhealth for the long-term
development of the Lansen Group's business. Accordingly, Cathay
will not be issuing a circular and will not be seeking shareholder
approval for the extension of the expiry of the Put Option as
initially announced on 25 June 2018.
In an announcement made today by Lansen, it has given the
following rationale for its decision:
"It is the view of the management of Lansen that Natural
Dailyhealth represents a suitable platform for Lansen to develop
its healthcare segment. After several years of effort, Natural
Dailyhealth's sales strategy which focuses on major products and
major customers is expected to have a positive prospect this year.
Natural Dailyhealth has been pushing forward the applications for
the registration of several of its healthcare products with China
Food and Drug Administration and is expected to make significant
progress this year. At the same time, three new health food
products are expected to be launched into the market in 2019. The
first products have been launched and various marketing campaigns
have been carrying out."
"Natural Dailyhealth's business is strategically critical to
Lansen's growth. Management of Lansen considers that the healthcare
segment would be a core segment for the Lansen Group's future
development, in which Natural Dailyhealth's products will be the
growth engine of the entire Lansen Group. As a result, not
exercising the Put Option would be in line with Lansen's strategic
plan and in the interests of Lansen and its shareholders as a
whole."
"Based on a valuation report dated 22 March 2019 prepared by
Ascent Partner, an independent valuer appointed by Lansen, using
generally acceptable methodologies the investment value of the
shares of Natural Dailyhealth held by the Subscriber is
RMB75,397,000 and it is larger than the Put Option Strike Price,
which is RMB64,510,000. Therefore, the Lansen Board has decided
that the Subscriber will continue to hold Natural Dailyhealth for
the long-term development of the Lansen Group's business and will
not exercise the Put Option. The independent non-executive
directors of Lansen and Gram Capital Limited, an independent
financial adviser appointed by Lansen have confirmed that the
non-exercise of the Put Option is fair and reasonable and in the
interests of Lansen and its shareholders as a whole."
The full text of the Lansen Announcement can be found at
https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0621/ltn20190621801.pdf
and will also be made available at the Announcements & Notices
section of Lansen's homepage
http://holding.lansen.com.cn/en/newslist.aspx?NodeCode=10002000700050005.
- ENDS -
For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director) Tel: +852 2828 9289
Patrick Sung (Director and Controller)
Consilium Strategic Communications
Mary-Jane Elliott/ Matthew Neal / Lindsey Neville Tel: +44 (0) 203 709 5700
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 Group aims 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 PRC specialty pharmaceutical company focused
on rheumatology and dermatology; Haizi, a PRC inositol
manufacturer; 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 1,500 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 in Shenzhen. For more
information please visit the Company's website:
http://www.cathay-intl.com.hk.
About Lansen
Lansen, whose shares are listed on the main board of the Hong
Kong Stock Exchange, is a 50.68% 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 1,000 hospitals
in four municipalities, 25 provinces and cities in the PRC. For
more information please visit the Lansen's website:
www.lansen.com.cn/en/index.aspx.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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