Offer for Tianjin Zhong Xin triggered at revised price of US$0.894 per share

FOLLOWING a transfer of a two-thirds ownership in Chinese conglomerate Tianjin Pharmaceutical Holdings (TPH) to a third party, a "chain offer" for the remaining shares of Tianjin Zhong Xin Pharmaceutical Group on both the Singapore and Shanghai bourses that are not held by offeror Tianjin Pharmaceutical Singapore International Investment and TPH has been triggered.

As at March 26, TPH has shares representing about 42.8 per cent of the total voting rights of Tianjin Zhong Xin. About one quarter of Tianjin Zhong Xin's total shares are listed on the Singapore Exchange, with the remainder listed on the Shanghai Stock Exchange.

The Singapore financial advisers, DBS and Bank of China, have revised the offer price for the Singapore-listed stock from US$0.893 to US$0.894 per share, following an earlier miscalculation, while the offer price for the Chinese shares remain at 17.43 yuan (S$3.58) per share because of limitations that prevent them from amending the price.

The offeror plans to maintain the listing status of the Singapore stock on the mainboard, and will only reconsider if the firm falls short of the free float requirement.

The chain offer will close at 5.30pm (Singapore time) on April 29, and no extension will be given.

RHB Bank has been appointed as the independent financial adviser to the company directors who are considered independent for the purpose of making a recommendation to the shareholders in Singapore, while Wanlian Securities is the independent financial adviser to advise the non-interested directors in Shanghai.

On the Singapore bourse, Tianjin Zhong Xin's shares last closed at US$0.90 on March 25.