Cathay International Holdings Ld Disposal of Starry Shares (9881Y)

TIDMCTI

RNS Number : 9881Y

Cathay International Holdings Ld

14 May 2019

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

Cathay International Holdings Limited ("Cathay" or the "Company")

Disposal of Starry Shares

Hong Kong, 14 May 2019 - Cathay International Holdings Limited (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People's Republic of China, announces that further to the approvals granted by Cathay's shareholders on 12 April 2019 and by the shareholders of its subsidiary, Lansen Pharmaceutical Holdings Limited (Lansen) (HKEX: 503), on 9 May 2019, Lansen has today disposed on-market of an aggregate of 2,400,000 shares in Zheijang Starry Pharmaceutical Co., Ltd (Starry) at the price of RMB 29.50 per Starry Shares.

The selling price of RMB 29.50 represented 10 per cent discount to the closing price of Starry Shares on the Shanghai Stock Exchange on 13 May 2019. The gross sale proceeds of disposal were approximately RMB 70.80 million (approximately USD10.36 million), before deducting transaction costs and related tax. Lansen is expected to recognise a net gain of approximately USD 5.15 million, of which USD 2.61 million is attributable to Cathay.

As at the date of this announcement after the disposal of Starry Shares, 10,375,000 Shares are owned by the Group.

The full text of the Lansen Announcement can be found at http://www3.hkexnews.hk/listedco/listconews/SEHK/2019/0514/LTN20190514751.pdf and will also be made available at the Announcements & Notices section of Lansen's homepage at http://holding.lansen.com.cn/en/newslist.aspx?NodeCode=10002000700050005.

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For further enquiries, please contact:

Cathay International Holdings Limited

Eric Siu (Finance Director) Tel: [phone]

Patrick Sung (Director and Controller)

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 an operator and investor in the healthcare sector in the People's Republic of China (the "PRC"). The Group aims to leverage on investment opportunities in the growing domestic demand for high quality healthcare products in the PRC and build portfolio companies into market sector leaders with competitive edge. Cathay has already demonstrated a track record of identifying investment opportunities in this area including: Lansen, a PRC specialty pharmaceutical company focused on rheumatology and dermatology; Haizi, a PRC inositol manufacturer; Natural Dailyhealth, 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 1,600 people across the PRC, including over 20 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen. Cathay also has a hotel investment in Shenzhen. For more information please visit the Company's website: http://www.cathay-intl.com.hk.

About Lansen

Lansen, whose shares are listed on the main board of the Hong Kong Stock Exchange, is a 50.68% 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 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: www.lansen.com.cn/en/index.aspx.

About Starry

Starry, whose shares are listed on the Shanghai Stock Exchange (stock code: 603520), is 10.65% 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 generic drug manufacturer of iohexol's active pharmaceutical ingredients in the PRC and is experienced in the production management and quality control of bulk pharmaceuticals. For more information please visit Starry's website: http://www.starrypharm.com/en/index.aspx.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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May 14, 2019 06:54 ET (10:54 GMT)