Changes in Hong Kong stocks | China Traditional Chinese Medicine (00570) fell by more than 11%, and privatization prerequisites are not expected to complete overseas direct investment approval as scheduled

The Zhitong Finance App learned that Chinese Traditional Chinese Medicine (00570) fell by more than 11%. As of press release, it fell 11.34% to HK$3.83, with a turnover of HK$161 million.

According to the news, on October 16, China Traditional Chinese Medicine issued an announcement disclosing the latest privatization process. According to reports, the prerequisites for the company's privatization process are foreign direct investment approval and antitrust approval. The final precondition deadline is October 18, 2024. The announcement said that since it is currently unlikely that overseas direct investment approval has not been obtained on or before the final deadline of the prerequisites, the offeror and controlling shareholders are currently seeking the consent of the investor group to extend the final deadline of the preconditions, but it is still uncertain whether such approval can be obtained from the investor group.

In February of this year, China Traditional Chinese Medicine issued an announcement stating that Sinopharm Group plans to privatize Chinese medicines at a price of HK$4.6 per share. Based on the relevant shareholding ratio of Sinopharm Group, the total cost of this privatization is approximately HK$15.45 billion. As for the reason for this privatization, China Traditional Chinese Medicine believes that due to limited transaction volume in the secondary market, its function as a financing platform for listed companies is limited.