Cathay Intl Hldgs CTI 1.5% holding in Zhejiang Starry Pharmaceutical Co.

  Cathay Intl Hldgs (CTI) - 1.5% holding in Zhejiang Starry Pharmaceutical Co.

RNS Number : 8760R
Cathay International Holdings Ld
23 November 2012




                    Cathay International Holdings Limited

                         ("Cathay" or the "Company")

                                      

     1.5% holding in Zhejiang Starry Pharmaceutical Co., Ltd. ("Starry")



Hong Kong, 23 November 2012 - Cathay International Holdings Ltd. (LSE: CTI.L),
an investment holding company and a leading investor in the growing healthcare
sector in the People's Republic of  China ("PRC"), today announces that on  23 
November 2012,  its  wholly-owned  subsidiary,  Cathay  International  Capital 
Limited ("CIC"), agreed  to transfer its  1.5% indirect holding  in Starry  to 
Horizon Network  Limited ("Horizon  Network"),  a wholly-owned  subsidiary  of 
Lansen Pharmaceutical  Holdings  Limited ("Lansen")  (the  "Transaction").  At 
completion of the Transaction,  Lansen will increase  its indirect holding  in 
Starry from 20% to 21.5%. Starry will continue to be treated as an  associated 
company of Cathay, by virtue of  Cathay's majority holding in Lansen, and  its 
future results will be accounted for accordingly.



The aggregate cash consideration receivable  at completion of the  Transaction 
is RMB13.68million (approximately US$2.19m). The consideration was  determined 
after arm's length negotiations between CIC and Horizon Network with reference
to an independent professional valuation.  Completion shall take place on  or 
before 30 November 2012.



The Transaction  provides  the benefit  of  streamlining Cathay's  holding  in 
Starry. The Board believes  that the Transaction  will create managerial  and 
operational synergies within  the Cathay  group relying on  the experience  of 
Lansen in production management in the pharmaceutical sector.



The Board considers that  the terms and conditions  of the Transaction are  on 
normal commercial terms and  the Transaction is in  the best interests of  the 
Cathay group and Cathay's shareholders.





                                    -ENDS-

                                      

For further enquiries, please contact:



Cathay International Holdings Limited                 

Eric Siu (Finance Director)                           Tel: +852 2828 9289

Patrick Sung (Director and Controller)
                                                     

M:Communications                                      

Mary-Jane Elliott / Amber Bielecka / Claire Dickinson Tel: +44 (0)20 7920 2330



About Cathay

Cathay International Holdings  Limited (LSE: CTI.L),  focused on the  People's 
Republic of China  ("PRC"), is  an investment  holding company  and a  leading 
investor in the growing  healthcare sector in the  People's Republic of  China 
("PRC"). The  Cathay group  employs more  than 2,000  people across  the  PRC, 
including over 30 specialist corporate and business development staff based at
the holding company's offices in Hong Kong and Shenzhen.



Cathay aims to identify investment opportunities with emphasis on high  growth 
healthcare markets and  build them into  market sector leaders,  with a  clear 
exit strategy. Cathay has  demonstrated a strong  track record of  identifying 
high-growth potential  investment opportunities  in this  area including:  the 
Lansen group,  China's leading  specialty  pharmaceutical company  focused  on 
rheumatology, and the  Haotian group,  a company engaged  in the  manufacture, 
marketing  and  sale  of  key  active  ingredients  for  healthcare  products, 
including inositol.  To  complement its  healthcare  portfolio, Cathay  has  a 
research and product development business focused on bringing new products  to 
the growing Chinese market.



Cathay also has a private equity investment arm focused on minority investment
opportunities and a hotel investment.  For more information please visit  the 
Company's website: www.cathay-intl.com.hk.



About Lansen

Cathay owns  a  50.56% majority  interest  in  Lansen. Lansen  is  a  leading 
pharmaceutical company  in  China which  focuses  on the  rheumatic  specialty 
prescription western pharmaceuticals for the treatment of autoimmune rheumatic
diseases. Founded in  2002, the Lansen  group is engaged  in the  manufacture, 
distribution and development of  rheumatic drugs, with  a leading position  in 
thedisease-modifying anti-rheumatic drugs  ("DMARDs")market in  the PRC.  In 
addition to 13 non-core medical products, the Lansen group has three rheumatic
specialty prescription western pharmaceuticals as its core products, of  which 
Pafulin and Tuoshu  rank the  first and the  fourth respectively  in terms  of 
DMARDs'  market  share.  The  Lansen   group  has  established  an   extensive 
distribution network, covering more than  1,000 hospitals in 25 provinces  and 
four municipal cities. The headquarters  for production and administration  is 
located  in  Ningbo,  Zhejiang  Province,  the  PRC,  with  modern  production 
facilities occupying an area of 64,000  square meters. Apart from the  Chinese 
Government's GSP certification,  the Lansen group's  operating facilities  are 
GMP-certified by  the  State  Food  and  Drug  Administration  and  adhere  to 
stringent  and  closely  monitored   quality  assurance  and  safety   control 
processes.



About Starry

Starry is  a sino-foreign  equity joint  venture limited  company  established 
under  the  laws  of  the  PRC,   specializing  in  the  production  of   bulk 
pharmaceuticals and intermediates. The  twocore bulk pharmaceutical  products 
of Starry are iohexol for X-CT non-ionic contrast agents and levofloxacin  for 
antibiotics. Starry is  the largest  iohexol manufacturer  in the  PRC and  is 
experienced  in  the  production  management  and  quality  control  of   bulk 
pharmaceuticals.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

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MSCKMMZMRFZGZZG -0- Nov/23/2012 08:55 GMT
 
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