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Luye Pharma Group ( (HK:2186) ) has issued an update.
Luye Pharma Group has structured a series of transactions around the transfer of a 25% equity interest in its subsidiary Nanjing Luye for RMB1.086 billion to limited partnership NJ Xinshi, in which its unit Shandong Luye holds an approximately 33.2% stake alongside China Cinda and other general partners. To support and control this investment structure, related entities of Luye have agreed to multiple option arrangements, including a put option giving NJ Xinshi the right to require Yantai Luye to repurchase its stake in Nanjing Luye under certain conditions, a call option allowing Yantai Luye to acquire China Cinda’s interest in NJ Xinshi (and simultaneously that of Hangzhou Xinshi), and a corresponding put option enabling China Cinda to exit by selling its entire partnership interest to Yantai Luye. In addition, Yantai Luye must compensate China Cinda if NJ Xinshi cannot meet required semi-annual distributions, while Luye Pharma and Shenzhen Luye will jointly guarantee Yantai Luye’s obligations under the partnership option agreements and back a bank facility of up to RMB648 million to be obtained by NJ Xinshi after completion, underscoring Luye’s commitment to supporting the financing and risk management framework around the Nanjing Luye stake transfer.
The most recent analyst rating on (HK:2186) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Luye Pharma Group stock, see the HK:2186 Stock Forecast page.
More about Luye Pharma Group
Luye Pharma Group Ltd. is a Hong Kong-listed pharmaceutical company engaged in the development, manufacture and sale of prescription drugs, with operations and investments across China. Through subsidiaries such as Shandong Luye, Yantai Luye and Shenzhen Luye, the group structures partnerships and financing vehicles to support its pharmaceutical assets and related businesses.
YTD Price Performance: 30.41%
Average Trading Volume: 23,304,790
Technical Sentiment Signal: Strong Sell
Current Market Cap: HK$11.12B
For detailed information about 2186 stock, go to TipRanks’ Stock Analysis page.