The Zhitong Finance App learned that UBS released a research report stating that it will maintain Tiger Pharmaceuticals (03347)'s “buy” rating and target price of HK$52.6. Tiger Pharmaceuticals announced that it will participate in the privatization and business spin-off of Fangda Holdings (01521) through its wholly-owned subsidiary Hong Kong Tiger. UBS believes that if the transaction is completed according to the plan, Tiger Pharmaceuticals may be able to obtain non-target business in mainland China and approximately RMB 1.81 billion in cash, and has the right to receive additional consideration payments from Charles River Laboratories. The transaction may help Tiger Pharmaceuticals divest its non-core business and focus on clinical CRO services.
According to the report, the cancellation price for each share of Fangda Holdings was HK$2.37, a 59.1% premium over the closing price of HK$1.49 on November 9, and a 107.2% premium over the previous 360-day average share price, which is equivalent to about 91.6 times the price-earnings ratio of Fangda Holdings in 2025.
After privatization is completed, Tiger Pharmaceuticals plans to acquire non-target businesses in mainland China, with an initial valuation of about US$205.5 million; target businesses such as bioanalysis and pharmacokinetics (DMPK) will be sold to Charles River Laboratories, with a preliminary valuation of about US$470 million; Li Song, founder of Fangda Holdings, and related trusts or acquisitions of overseas non-target businesses, with an initial valuation of about US$84.4 million.