Chinese Traditional Chinese Medicine (00570): Privatization Proposals Fizzled Out

According to Zhitong Finance App News, China Traditional Chinese Medicine (00570) and the offender Sinopharm Group Gongyu Co., Ltd. jointly announced that on October 18, 2024, precondition (a) (i.e. approval of foreign direct investment) was still not met, and the final deadline for the prerequisite conditions was not extended on October 18, 2024 regarding the proposal to privatize the company by means of a planning arrangement under section 673 of the Hong Kong Law. Therefore, the recommendation expires on October 18, 2024. Accordingly, planning documents will not be distributed, and the listing status of shares on the Hong Kong Stock Exchange will not be revoked.

The offer period for the proposals has ended on the date of this Joint Announcement. According to Rule 31.1 of the Takeovers Code, except with the consent of an enforcer, the offeror or (or any person acting in concert with any of them thereafter) shall not announce an offer or the possibility of making an offer against the company, or any voting right to acquire the company within 12 months from the date of withdrawal or expiration of the proposal, so that the offeror or person acting in concert with the offeror would therefore be required to make an offer in accordance with Rule 26 of the Takeovers Code.