Clifford Chance

Clifford Chance advises CITIC Securities on China TCM's HK$15.6 billion proposed privatisation

Global law firm Clifford Chance has advised CITIC Securities as financial adviser to Sinopharm Common Wealth Company Limited, an investment consortium led by Sinopharm Group in relation to the proposed privatisation of China Traditional Chinese Medicine Holdings Co. Limited (China TCM).

The approximately HK$15.6 billion (approximately US$2 billion) scheme will be financed through a cash contribution from the investor consortium and Sinopharm Group or debt. China TCM's proposed privatisation is the largest one announced so far this year.

Partner Tommy Tam led the transaction, with support from senior associate Jimmy Jin, associates Anson Wong and Elaine Lau, and trainees Jonathan Chan and Alice Tsui.

Tommy said, "We are honoured to advise CITIC on this transformative transaction, the largest proposed take-private deal in Hong Kong announced so far this year. It builds on our track record advising Hong Kong-listed companies on their most significant matters. Our team's deep understanding of the relevant regulations and take-private process has been pivotal in steering a transaction of this complexity and scale."

China TCM is principally engaged in the manufacture and sale of traditional Chinese medicine (TCM) and pharmaceutical products with a focus on concentrated TCM granules, TCM finished drugs and TCM decoction pieces. China TCM has been listed on the Hong Kong Stock Exchange since 1993.

Clifford Chance is the leading adviser of take-private transactions in Hong Kong, having advised Essity on the sale of its majority stake in Vinda and the privatisation of Inner Mongolia Yitai Coal.