Cathay International Holdings Ld Update re Natural Dailyhealth (0595D)

TIDMCTI

RNS Number : 0595D

Cathay International Holdings Ld

21 June 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")

Update re Extension of exercise period of the put option to repurchase shares in Natural Dailyhealth

Hong Kong, 21 June 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 it has been informed by Lansen Pharmaceutical Holdings Ltd ("Lansen", incorporated in the Cayman Islands) (HKEX:503), in which the Company has a 51.59% shareholding, that it will not exercise the put option ("Put Option") held by Lansen's wholly owned subsidiary, Lansen Pharmaceutical Holdings Limited (incorporated in the British Virgin Islands) (the "Subscriber"), over its 30% shareholding in Natural Dailyhealth Holdings Limited ("Natural Dailyhealth") and will continue to hold Natural Dailyhealth for the long-term development of the Lansen Group's business. Accordingly, Cathay will not be issuing a circular and will not be seeking shareholder approval for the extension of the expiry of the Put Option as initially announced on 25 June 2018.

In an announcement made today by Lansen, it has given the following rationale for its decision:

"It is the view of the management of Lansen that Natural Dailyhealth represents a suitable platform for Lansen to develop its healthcare segment. After several years of effort, Natural Dailyhealth's sales strategy which focuses on major products and major customers is expected to have a positive prospect this year. Natural Dailyhealth has been pushing forward the applications for the registration of several of its healthcare products with China Food and Drug Administration and is expected to make significant progress this year. At the same time, three new health food products are expected to be launched into the market in 2019. The first products have been launched and various marketing campaigns have been carrying out."

"Natural Dailyhealth's business is strategically critical to Lansen's growth. Management of Lansen considers that the healthcare segment would be a core segment for the Lansen Group's future development, in which Natural Dailyhealth's products will be the growth engine of the entire Lansen Group. As a result, not exercising the Put Option would be in line with Lansen's strategic plan and in the interests of Lansen and its shareholders as a whole."

"Based on a valuation report dated 22 March 2019 prepared by Ascent Partner, an independent valuer appointed by Lansen, using generally acceptable methodologies the investment value of the shares of Natural Dailyhealth held by the Subscriber is RMB75,397,000 and it is larger than the Put Option Strike Price, which is RMB64,510,000. Therefore, the Lansen Board has decided that the Subscriber will continue to hold Natural Dailyhealth for the long-term development of the Lansen Group's business and will not exercise the Put Option. The independent non-executive directors of Lansen and Gram Capital Limited, an independent financial adviser appointed by Lansen have confirmed that the non-exercise of the Put Option is fair and reasonable and in the interests of Lansen and its shareholders as a whole."

The full text of the Lansen Announcement can be found at https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0621/ltn20190621801.pdf and will also be made available at the Announcements & Notices section of Lansen's homepage 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 1,500 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 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.

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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June 21, 2019 06:56 ET (10:56 GMT)