Tuesday, August 2, 2011

C&O surges on Shionogi's takeover offer

Shares of Singapore-listed Chinese drugmaker C&O Pharmaceutical Technology (COPT.SI) surged as much as 8.9% on Tuesday after Japan’s Shionogi (4507.T) said its plans to take control of the firm for 14.3 billion yen ($222.8 million).

Around 9:05 a.m., C&O shares were up 6.7% at $0.48 on a volume of 3.9 million shares, 2.7 times the average daily volume in the last 30 days.

Shionogi had agreed to buy a 24% stake from C&O’s largest shareholder Leo Star Development and will make a general offer at a price of $0.50 per share, a premium of around 11% over C&O’s last traded price on July 28 before the shares were suspended.
 
Shionogi intends to jointly operate C&O with Sumitomo Corp (8053.T), which holds about 29% of the total issued shares of C&O, the Singapore-listed firm said in a statement. 
 

No comments:

Post a Comment