HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

<ul>
<li>Some shareholders have confirmed to be acting in concert at the Court Meeting, but long-term investors may vote against the privatization because they are not satisfied with the Cancellation Price.</li>
<li>The success rate of SciClone’s privatization is lower than that of China TCM and <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane</a>. If fails, there's a high probability that the share price will fall back to HK$14/share.</li>
<li>The current share price cannot provide decent returns. Together with exchange rate risk, potential failure risks, etc., there's no need for investors to take risks at this share price level.</li>
</ul>


Some shareholders have confirmed to be acting in concert at the Court Meeting, but long-term investors may vote against the privatization because they are not satisfied with the Cancellation Price.
The success rate of SciClone’s privatization is lower than that of China TCM and L'Occitane. If fails, there's a high probability that the share price will fall back to HK$14/share.
The current share price cannot provide decent returns. Together with exchange rate risk, potential failure risks, etc., there's no need for investors to take risks at this share price level.


Sciclone Pharmaceuticals (6600.HK) Privatization Update - Some "Unstable Factors" During Voting

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On the 28th March, Li Zhenfu (<a href="https://www.smartkarma.com/entities/sciclone-pharmaceuticals-holdings-limited" target="_blank" data-smartkarma-citation="entities:17351:1" rel="noopener">SciClone (6600 HK)</a>'s NED), <a href="https://www.smartkarma.com/entities/assicurazioni-generali-spa" target="_blank" data-smartkarma-citation="entities:21191:1" rel="noopener">Assicurazioni Generali (G IM)</a>, and concert parties (collectively controlling 36.61%), <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0328/2024032800746.pdf" target="_blank" rel="noopener">made an Offer at $18.80/share</a>, a 33.9% premium to undisturbed. </li>
<li>The Offer price is bang in line with SciClone's March 2021 IPO price. Terms were declared final. This is a clean deal.</li>
<li>The <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0523/2024052301651.pdf" target="_blank" rel="noopener">Scheme Document</a> is now out. The Court Meeting will be held on the 19th June. Expected payment on or before the 12 July. FWIW: IFA says fair &amp; reasonable.</li>
</ul>


On the 28th March, Li Zhenfu (SciClone (6600 HK)'s NED), Assicurazioni Generali (G IM), and concert parties (collectively controlling 36.61%), made an Offer at $18.80/share, a 33.9% premium to undisturbed. 
The Offer price is bang in line with SciClone's March 2021 IPO price. Terms were declared final. This is a clean deal.
The Scheme Document is now out. The Court Meeting will be held on the 19th June. Expected payment on or before the 12 July. FWIW: IFA says fair &amp; reasonable.


SciClone Pharmaceuticals (6600 HK): 19th June Shareholder Vote

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sciclone-pharmaceuticals-holdings-limited" target="_blank" data-smartkarma-citation="entities:17351:1" rel="noopener">Sciclone Pharmaceuticals (6600 HK)</a>'s scheme document is out, and the court meeting is scheduled for 19 June. The IFA considers the HK$18.80 per share offer fair and reasonable. </li>
<li>The key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). No independent shareholder holds a blocking stake.</li>
<li>This is a done deal. At the last close and for the 12 July payment, the gross and annualised spread is 2.2% and 17.3%, respectively.</li>
</ul>



Sciclone Pharmaceuticals (6600 HK)'s scheme document is out, and the court meeting is scheduled for 19 June. The IFA considers the HK$18.80 per share offer fair and reasonable. 
The key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). No independent shareholder holds a blocking stake.
This is a done deal. At the last close and for the 12 July payment, the gross and annualised spread is 2.2% and 17.3%, respectively.


SciClone Pharma (6600 HK): Scheme Vote on 19 June

<ul>
<li>Zadaxin is the biggest performance driver of SciClone. However, due to the challenge of generic drugs/VBP, sales of Zadaxin wouldn’t maintain strong growth momentum.  SciClone’s revenue/profit would face a significant decline.</li>
<li>The capital participating the IPO had reduced their holdings or exit entirely. Considering the low valuation/poor liquidity in HKEX, we think this privatization provides investors with a great exit opportunity.</li>
<li>For arbitrage investors, the annualized return depends on the time it takes to complete the privatization (e.g. about 5%-10%). If the privatization fails, share price could fall back to HK$14.</li>
</ul>


Zadaxin is the biggest performance driver of SciClone. However, due to the challenge of generic drugs/VBP, sales of Zadaxin wouldn’t maintain strong growth momentum.  SciClone’s revenue/profit would face a significant decline.
The capital participating the IPO had reduced their holdings or exit entirely. Considering the low valuation/poor liquidity in HKEX, we think this privatization provides investors with a great exit opportunity.
For arbitrage investors, the annualized return depends on the time it takes to complete the privatization (e.g. about 5%-10%). If the privatization fails, share price could fall back to HK$14.


Sciclone Pharmaceuticals (6600.HK) - The Privatization Offers a Good Exit Opportunity

<ul>
<li>After <a href="https://www.smartkarma.com/entities/sciclone-pharmaceuticals-holdings-limited" target="_blank" data-smartkarma-citation="entities:17351:1" rel="noopener">Sciclone Pharmaceuticals (6600 HK)</a> was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0319/2024031900127.pdf" target="_blank" rel="noopener">suspended</a> on the 19th March pursuant to the Takeovers Code, I speculated a Scheme at the March 2021 IPO Price. And that's what unfolded.</li>
<li>Li Zhenfu (SciClone's NED), <a href="https://www.smartkarma.com/entities/assicurazioni-generali-spa" target="_blank" data-smartkarma-citation="entities:21191:1" rel="noopener">Assicurazioni Generali (G IM)</a> and concert parties (collectively controlling 36.61%) have <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0328/2024032800746.pdf" target="_blank" rel="noopener">made an Offer at $18.80/share</a>, a 33.9% premium to last close. Terms are final.</li>
<li>The long stop date is the 31 October. That's too conservative. This could be wrapped up late July. </li>
</ul>


After Sciclone Pharmaceuticals (6600 HK) was suspended on the 19th March pursuant to the Takeovers Code, I speculated a Scheme at the March 2021 IPO Price. And that's what unfolded.
Li Zhenfu (SciClone's NED), Assicurazioni Generali (G IM) and concert parties (collectively controlling 36.61%) have made an Offer at $18.80/share, a 33.9% premium to last close. Terms are final.
The long stop date is the 31 October. That's too conservative. This could be wrapped up late July. 


SciClone Pharma (6600 HK): Privatisation At IPO Price

China

SciClone Pharmaceuticals (Holdings) Limited operates as a biopharmaceutical company. The Company develops produces and sells oncology drug, infectious diseases drugs and other products. SciClone Pharmaceuticals (Holdings) markets its products throughout China.

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Sciclone Pharmaceuticals (6600 HK)