Movement Alert|SBP GROUP Rises 3.14% in Regular Trading, Plans RMB 4.48 Billion Acquisition to Raise CT Tianqing Stake to 65%

Market Focus
Sep 14

On September 14, SBP GROUP rose 3.14% in regular trading, trading at HK$5.415/share, with turnover of approximately HK$64.11 million.

On the news front, the company announced that its wholly-owned subsidiary plans to acquire 100% equity of Sino Harmony Ventures Limited from executive director and major shareholder Xie Chengrun for RMB 4.48 billion in cash, thereby indirectly obtaining an additional 5% stake in Chia Tai Tianqing Pharmaceutical Group. Upon completion, expected on September 16, the company's indirect holding in CT Tianqing will increase from 60% to 65%. Based on CT Tianqing's trailing twelve-month adjusted net profit attributable to shareholders, the acquisition implies a P/E ratio of approximately 19x and is expected to boost the group's adjusted net profit by approximately RMB 3.5 billion, representing a 7.4% accretion. The deal further consolidates the company's controlling position in its core pharmaceutical subsidiary and is expected to enhance strategic synergies across R&D, manufacturing, and commercialization.

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