Cathay International Holdings Ld Lansen's fifth share reduction plan of Starry (9905L)

TIDMCTI

RNS Number : 9905L

Cathay International Holdings Ld

11 September 2019

Cathay International Holdings Limited

("Cathay" or the "Company")

Lansen's fifth share reduction plan of Starry

Hong Kong, 11 September 2019 - Cathay International Holdings Ltd. (LSE: CTI.L), an operator and investor in the growing healthcare sector in the People's Republic of China (the "PRC"), announces that, Lansen Pharmaceutical Holdings Limited ("Lansen", incorporated in the Cayman Islands) (HKEX: 503), the Company's 52.83% owned subsidiary, has made a regulatory announcement in accordance with the requirements of its Hong Kong listing.

Lansen has today announced its fifth share reduction plan (the "Fifth Share Reduction Plan") in relation to its holding in the shares of Zhejiang Starry Pharmaceutical Co., Ltd. ("Starry") ("Lansen Announcement"). The full text of the Lansen Announcement can be found at https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0911/ltn20190911463.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

Before proceeding with a disposal, Lansen is required by the rules of the China Securities Regulatory Commission to announce a share reduction plan. Lansen has made such announcements previously on 9 March 2017, 19 September 2017, 3 April 2018 and 20 February 2019 in relation to the First Share Reduction Plan, Second Share Reduction Plan, Third Share Reduction Plan and Fifth Share Reduction Plan respectively.

(1) Lansen Investments (Hong Kong) Limited ("Lansen HK") and Full Keen Limited ("Full Keen") disposed an aggregate of 4,175,000 Starry Shares under the First Share Reduction Plan and the details of such disposal are set out in the announcement and circular dated 15 March 2017 and 28 April 2017 respectively;

   (2)          Lansen HK did not dispose of any Starry Share under the Second Share Reduction Plan; 

(3) Lansen HK disposed an aggregate of 2,400,000 Starry Shares under the Third Share Reduction Plan and the details of such disposal are set out in the announcement dated 6 June 2018; and

(4) Lansen HK and Full Keen disposed an aggregate of 5,278,000 Starry Shares under the Fourth Share Reduction Plan and the details of such disposal are set out in the announcements dated 14 May 2019, 11 June 2019 and 10 September 2019.

The Lansen Announcement reports that on 11 September 2019 Lansen HK notified Starry about the fifth share reduction plan (the "Fifth Share Reduction Plan") in relation to its holding in the Starry Shares and the key points are:

-- Maximum number of Starry Shares that can be disposed: not more than 10,073,900 Starry Shares for Lansen HK, representing not more than 6% of the total number of issued shares in Starry;

-- Share reduction period: a period of six month commencing on the third trading day of the Shanghai Stock Exchange immediately following 12 September 2019, the date of Starry's announcement of the Fifth Share Reduction Plan (or a period of six month commencing on the 15th trading day of the Shanghai Stock Exchange immediately following 12 September 2019 for reduction of Starry Shares through centralised competitive bidding on the Shanghai Stock Exchange);

-- Methods of share reduction for Lansen HK: through (a) block trade sales or (b) centralised competitive bidding system on the Shanghai Stock Exchange; provided that total amount of share reduction through block trade sales and the centralised competitive bidding system in any consecutive ninety days period shall not exceed 2% and 1% of the total number of issued shares in Starry respectively.

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

The notification of the Fifth Share Reduction Plan was given by Lansen HK to Starry in accordance with the relevant rules and regulations of the China Securities Regulatory Commission, governing share reduction by a substantial shareholder holding more than 5% interest in a listed issuer.

As at the date of this announcement, no definitive or legally binding agreement relating to disposal of Starry Shares has been entered into by the Company or Lansen.

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)

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 1,500 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 52.83% 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 6.65% 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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September 11, 2019 06:37 ET (10:37 GMT)