Deals - Asia

HK-listed Sinopharm plans $524 million share sale to expand distribution network

HONG KONG (Reuters) - China's pharmaceutical products distributor Sinopharm Group Co Ltd 1099.HK said on Friday it plans to issue HK$4.07 billion ($523.66 million) worth of H shares to raise capital for the expansion of its distribution and retail network.

Sinopharm said it plans to sell up to 149 million new H shares, representing 4.8% of the total issue share capital on completion of the deal, to not less than six third-party investors.

The shares will be sold at HK$27.30 per share, representing a 7.3% discount to Thursday’s close.

None of the individual investors will become a substantial shareholder on completion of the deal, the company said.

China International Capital Corp 3908.HK, Hong Kong Securities Ltd, Haitong International Securities Co Ltd 0665.HK, Merrill Lynch (Asia Pacific) Ltd, Morgan Stanley & Co International plc, and UBS AG Hong Kong Branch are the placing agents.

Reporting by Donny Kwok; Editing by Shailesh Kuber