CSPC shares plunge after director John Zhao Huan sells 11.95pc stake
CSPC Pharmaceutical Group saw its share price fall 6.7 per cent to HK$6.28 yesterday after the company announced the discounted sale of an 11.95 per cent stake in the firm to a third party to cash out HK$4.4 billion.
CSPC Pharmaceutical Group saw its share price fall 6.7 per cent to HK$6.28 yesterday after the company announced the discounted sale of an 11.95 per cent stake in the firm to a third party to cash out HK$4.4 billion.
More than 661 million shares changed hands in the heaviest single day of trading in the company's history.
John Zhao Huan, an executive director of CSPC, sold 600 million shares yesterday to third parties and 105.88 million shares to CSPC chairman Cai Dongchen at HK$6.25 per share.
We see limited upside from the current [CSPC] stock price of HK$6.30
Zhao made the share sale through his wholly owned company Joyful Horizon. The 705.88 million shares represented 11.95 per cent of the company.
With this transaction, Zhao's share of CSPC fell from 74.2 per cent to 62.26 per cent.
Zhao is also a vice-president of Legend Holdings Corp, a mainland conglomerate that controls Hong Kong-listed computer company Lenovo Group, and the chief executive of Hony Capital, a mainland private equity firm sponsored by Legend.
Bocom International lowered on Monday its rating of CSPC from buy to neutral.