Sihuan Pharma (460 HK) Denies China Resources Approach
Event-Driven
352 Views, 13 May 2022 13:17
EXECUTIVE SUMMARY
Sihuan Pharmaceutical (460 HK) has shot down rumours that it is under negotiation with potential investors in respect of privatisation.
Reportedly SOE China Resources is in talks with Sihuan Pharma's chairman in a deal valuing the company at US$3bn or a 114% premium to the current price.
The logic of a privatisation makes sense. I would not be so quick to dismiss the denial. Plus Sihuan Pharma is very cash-rich.