Sinopharm Common Wealth Company Limited entered into a scheme of arrangement to acquire 67.54% stake in China Traditional Chinese Medicine Holdings Co. Limited for HKD 15.6 billion.

Sinopharm Common Wealth Company Limited entered into a scheme of arrangement to acquire 67.54% stake in China Traditional Chinese Medicine Holdings Co. Limited (SEHK:570) for HKD 15.6 billion on February 9, 2024. As per the terms of the transaction, the offer price per share is HKD 4.6. The parent company of Sinopharm Common Wealth Company Limited, Sinopharm Group Hongkong Co., Limited.

holds 32.46% stake in China Traditional Chinese Medicine. the Sinopharm Group Hongkong Scheme Shares held by the Sinopharm Group Hongkong, representing approximately 32.46% of the issued share capital of the Company, will be cancelled in consideration for the Sinopharm Group Hongkong Cancellation Consideration, being the allotment and issue of 1,634,705,642 Sinopharm Common Wealth to the Controlling Shareholder credited as fully paid in the amount equivalent to the aggregate amount of the Cancellation Price per Scheme Share with respect to all Sinopharm Group Hongkong Scheme Shares. all other Scheme Shares, representing approximately 67.54% of the issued share capital of the Company, will be cancelled in consideration for the Cancellation Price of HKD 4.6 per Scheme Share, which will be paid in cash.

Upon closing, Sinopharm Common Wealth Company Limited will hold 100% of China Traditional Chinese Medicine Holdings. An independent committee of the Board, comprising Mr. Xie Rong, Mr. Yu Tze Shan Hailson, Mr. Qin Ling and Mr. Li Weidong, being all the independent non-executive Directors, has been formed to make a recommendation to the Independent Shareholders as to whether, the Proposal and the Scheme are fair and reasonable. CITIC Securities Corporate Finance (HK) Limited acted as a financial advisor to the offeror.