Firms backed by Temasek, HighLight Capital buy stake in Viva Biotech unit ahead of listing

BEIJING – Entities backed by Singapore’s Temasek and Chinese investment firm HighLight Capital have agreed to a deal worth 1.06 billion yuan (S$199 million) for stakes in a unit of Viva Biotech Holdings, the pharmaceutical service company said late on Sunday.

The deal, which will dilute Viva Biotech’s stake in Viva Shanghai to about 75.79 per cent from 100 per cent, comes as the Chinese drug discovery and manufacturing service firm plans to restructure its businesses and list the Shanghai company on an onshore stock exchange.

Viva Biotech said it will use the net proceeds to redeem convertible bonds in a bid “to settle its outstanding liabilities without occupying its internal resources”.

The deal includes capital injection into Viva Shanghai by new investors and sale of existing interest in Viva Shanghai from Viva Investment, another unit of Viva Biotech, the filing showed.

Daxue Investments, a unit of Temasek, and True Light P, a private company held by Temasek-owned True Light Capital, will altogether hold a 17.55 per cent stake in Viva Shanghai after the deal, according to the filing. HLC SPV and Qingdao Hongyi, both linked to HighLight Capital, will obtain a total of 6.66 per cent stake from the transaction.

Viva Biotech has initiated a restructuring that will transfer all assets and personnel related to its early-stage drug discovery business to Viva Shanghai and move out of the Shanghai unit any assets and personnel related to drug development and manufacturing service, the filing showed.

Investors in the deal expect application for Viva Shanghai’s initial public offering to be filed by June 30 in 2024, said the filing. REUTERS