China-based Contract Research Organization (CRO) VIVA Biotech Holdings (HKG: 1873) has agreed to sell a stake in its Shanghai unit to entities backed by Singapore’s investment fund Temasek and China-based HighLight Capital, raising RMB 1.06 billion (USD 148.7 million). This transaction reduces VIVA Biotech’s stake in VIVA Shanghai from 100% to approximately 76%, indicating VIVA’s strategy to spin off the Shanghai firm for an independent listing. The net proceeds from the deal will be utilized to settle convertible bonds, without impacting the company’s internal resources.
Stake Distribution and Future Plans
Post-deal, two Temasek-owned firms, Daxue Investments and True Light P, will collectively hold a 17.55% stake in VIVA Shanghai, while HighLight Capital-linked companies HLC SPV and Qingdao Hongyi, will possess a combined 6.66% stake. This investment showcases confidence in VIVA Biotech’s operations and its potential for growth in the pharmaceutical sector.
Restructuring and Asset Realignment
VIVA Biotech is in the midst of restructuring its assets and personnel related to early-stage drug discovery to VIVA Shanghai, while drug development and manufacturing services are being moved out of the Shanghai unit to VIVA Biotech. This strategic realignment aims to streamline operations and enhance the company’s focus on its core competencies in drug discovery and development.-Fineline Info & Tech
