Stevenson, Wong & Co. acted as Hong Kong legal advisers to Jiangxi Pharmaceutical Investment Co., Ltd. (the “Offeror”) in relation to (i) the acquisition of 9.0% (the “Acquisition”) of the entire issued share capital of the Charmacy Pharmaceutical Co., Ltd., a joint-stock company established in the PRC listed on The Stock Exchange of Hong Kong Limited (stock code: 2289) (“Charmacy”) with a consideration of HK$70,858,000 and (ii) the unconditional mandatory cash offer (the “Offer”) by the Offeror to acquire all the issued shares of the Company.
The Offeror has completed the Acquisition on 17 January 2023, which thereby became the largest shareholder of Charmacy and triggered its mandatory general offer obligation under the Hong Kong Code on Takeovers and Mergers. The Offeror has then acquired another 10.52% of the entire issued share capital of the Company under the Offer which commenced on 20 January 2023 and closed on 10 February 2023.
The Offeror is a direct wholly-owned subsidiary of the Jiangxi Jiangzhong Pharmaceutical Commercial Operation Co., Ltd. (“Jiangzhong Yishang”), a state-owned enterprise in the PRC. Jiangzhong Yishang is principally engaged in the wholesale and retail of medicines and the sales of foods, disinfection equipment and Class III medical devices.
Charmacy together with its subsidiaries are principally engaged in the pharmaceutical distribution business. It mainly distributes western medicine, Chinese patent medicine and healthcare products to downstream distributors and retail terminals, as well as provides consultation service on pharmaceutical products. Charmacy completed its H share full circulation in June 2022.
Our team was led by our partner Mr. Rodney Teoh, assisted by team members including Associate Mr. Calvin KW Lo, Associate Ms. Angela Lau and Paralegal Ms. Cheyenne Xing.
Please contact our partner Mr. Rodney Teoh for any enquiries or further information.