Two investors are providing RMB2.7bn ($292m) in secondary funding for Hualan Biological Vaccines, the vaccine-focused spinoff of China-based biopharmaceutical company Hualan Biological Engineering, DealStreetAsia reported yesterday, citing a Shenzhen Stock Exchange filing.
Investment management firm Hillhouse Capital is paying approximately $175m for a 9% stake in the spinoff while Chen Yi Investment, an investment vehicle for Liu Xiaodan, a former chairman of investment bank Huatai United Securities, is taking a 6% share in return for $117m.
Formed in 2005, Hualan Biological Vaccines generated about $148m in revenue over the course of 2019, representing roughly a third of Hualan Biological Engineering’s revenue for the year, according to figures cited by DealStreetAsia.
Hillhouse and Chen Yi are buying the shares from a vehicle known as Hong Kong Ke Kang which is currently Hualan Biological Vaccines’ second largest shareholder.
Parent company Hualan Biological Engineering will retain a 75% stake in the spinoff once the deal has been completed. Hualan Biological Vaccines was valued at approximately $1.94bn in the deal.
