Chinese pharmaceutical company is privatised in precedent-setting deal

Tongjitang Chinese Medicines Company (Tongjitang) has been acquired by way of merger by Hanmax Investment (Hanmax), Fosun Industrial (Fosun) and Tonsun International Company (Tonsun). Tongjitang is a PRC pharmaceutical company focused on the development, manufacturing and sale of modernised traditional Chinese medicines in China. This transaction sets precedent as the first going-private for a US-listed company under the Cayman Islands merger statute.

After the acquisition, Tongjitang will continue its operations as a privately-held company owned solely by Hanmax and Fosun, and its American Depository Shares will no longer be listed on the New York Stock Exchange.

Beijing-based US securities Baker & McKenzie partner, Scott Clemens led a multi-office team that advised the buyers. US counsel to the independent committee of Tongjitang was a Sheppard Mullin Richter & Hampton team led by Silicon Valley partner, Louis Lehot. Thorp Alberga served as Cayman Islands counsel.