Cathay International Holdings Ld Lansen's share reduction plan of Starry (9758Y)

TIDMCTI

RNS Number : 9758Y

Cathay International Holdings Ld

09 March 2017

Cathay International Holdings Limited

("Cathay", the "Company" or the "Group")

Lansen's share reduction plan of Starry

Hong Kong, 9March 2017 - Cathay International Holdings Ltd. (LSE: CTI.L), a leading operator and investor in the growing healthcare sector in the People's Republic of China, announces that its subsidiary Lansen Pharmaceutical Holdings Ltd ("Lansen") (HKEX: 503), in which the Company has a 50.56% holding, has made an inside information announcement (the "Lansen Announcement") in Hong Kong today about a share reduction plan (the "Share Reduction Plan") in relation to its holding in the shares of Zhejiang Starry Pharmaceutical Co., Ltd. ("Starry"). Starry is listed on the Shanghai Stock Exchange, stock code 603520. The full text of the Lansen Announcement can be found at http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0309/LTN20170309238.pdf and will also be made available at the Announcements & Notices section of Lansen's homepage at http://www.lansen.com.cn/En/Announcements&Notices.asp.

It is stated in the Lansen Announcement that Lansen Investments (Hong Kong) Limited ("Lansen HK") and Full Keen Limited ("Full Keen"), both indirect wholly owned subsidiaries of Lansen, hold in aggregate 19,350,000 shares in Starry ("Starry Shares") or 16.125% of the issued share capital of Starry. Pursuant to relevant rules of the Shanghai Stock Exchange, the holdings in the Starry Shares are subject to a one-year lock-up period from the date of listing of Starry Shares on 9 March 2016, expired on 8 March 2017. As stated in the listing prospectus of Starry, Lansen HK and Full Keen further undertook that within the period of two years immediately following expiry of the lock-up, they would not dispose of more than 50% of their aggregate interests in Starry Shares in each year, with reference to their aggregate interests as of the last trading day of the preceding year.

As stated in the Lansen Announcement, Lansen HK and Full Keen have notified Starry of the Share Reduction Plan, the key points of which are as follows:

-- Number of Starry Shares to be disposed: not more than 9,675,000 Starry Shares, representing not more than 8.0625% in Starry

-- Share reduction period: a period of six months commencing on the third trading day of the Shanghai Stock Exchange immediately following 10 March 2017, the date of Starry's announcement of the Share Reduction Plan (a period of six months commencing on the 15th trading day of the Shanghai Stock Exchange immediately following 10 March 2017 for reduction of Starry Shares through centralised competitive bidding system on the Shanghai Stock Exchange)

-- Methods of share reduction: through (a) block trade sales, (b) transfer agreement, or (c) centralised competitive bidding system on the Shanghai Stock Exchange, provided that total amount of share reduction through the centralised competitive bidding system in any consecutive three month period shall not exceed 1% in Starry

-- Share reduction price: with reference to the prevailing trading price of Starry Shares on the Shanghai Stock Exchange

It is stated in the Lansen announcement that, as at the date of the Lansen announcement, no definitive or legally binding agreement relating to disposal of Starry Shares has been entered into by Lansen, Lansen HK or Full Keen.

Further announcements will be made as appropriate, including any necessary updates in relation to the Company's obligations as an issuer whose shares are quoted on the Main Market of the London Stock Exchange.

-ENDS-

For further enquiries, please contact:

Cathay International Holdings Limited

Eric Siu (Finance Director) Tel: [phone]

Patrick Sung (Director and Controller)

N+1 Singer

   Aubrey Powell/ Lauren Kettle - Corporate Finance                     Tel: [phone] 

Brough Ransom - Sales

Consilium Strategic Communications

   Mary-Jane Elliott/ Matthew Neal / Lindsey Neville                      Tel: [phone] 

About Cathay

Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and a leading operator and investor in the growing healthcare sector in the People's Republic of China (the "PRC"). The Company and its subsidiaries (collectively the "Group") aim to leverage on growth opportunities in the strong and growing domestic demand for high quality healthcare products in the PRC and build its portfolio companies into market sector leaders with competitive edge. Cathay has already demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen, a leading specialty pharmaceutical company focused on rheumatology and dermatology in the PRC; Haizi, a company engaged in the manufacture, marketing and sale of inositol and its by-product, di-calcium phosphate; Yangling, a company engaged in production and sales of plant extracts for use as key active ingredients in healthcare products; and Botai, a company engaged in collagen products.

The Group employs approximately 2,000 people across the PRC, including over 30 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen. Cathay also has a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk.

About Lansen

Lansen, whose shares are listed on the mainboard of the Hong Kong Stock Exchange, is a 50.56% owned subsidiary of Cathay. Lansen is engaged in the manufacture, distribution and development of specialty prescription drugs for treatment of autoimmune disorder in rheumatology and dermatology. Lansen is in the leading market position in disease modifying anti-rheumatic drugs ("DMARDs") for treatment of rheumatoid arthritis ("RA") in the PRC. Lansen has established an extensive distribution network, covering more than 1,000 hospitals in four municipalities, 25 provinces and cities in the PRC. For more information please visit the Lansen's website: http://www.lansen.com.cn/En/index.asp.

About Starry

Starry, whose shares are listed on the Shanghai Stock Exchange (stock code 603520), is 16.1% owned by Lansen. Starry is specialised in the research and development, manufacture, marketing and sales of bulk pharmaceuticals and intermediates. One of the core products of Starry is iohexol for X-CT non-ionic contrast agents. Starry is the largest iohexol manufacturer in the PRC and is experienced in the production management and quality control of bulk pharmaceuticals.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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March 09, 2017 04:05 ET (09:05 GMT)