JBM HEALTHCARE (HKEX: 02161) and JACOBSON PHARMA (HKEX: 02633) have jointly announced a proposed transaction. On June 29, 2026, Ng Wah Pharmaceutical, an indirect wholly-owned subsidiary of Jacobson Pharma, intends to sell 124,500 shares in Lee Chung Sing Tong (Group) Limited to Po Chai Herbal, an indirect wholly-owned subsidiary of JBM Healthcare, for a total consideration of HK$74.7 million.
Upon completion of the deal, Po Chai Herbal will become the legal and beneficial owner of 484,000 shares in the target company, representing 96.8% of its total issued share capital. As of the date of this joint announcement and prior to completion, the target company is owned 71.9% by Po Chai Herbal, 24.9% by Ng Wah Pharmaceutical, and 3.2% by an independent third party. Lee Chung Sing Tong is primarily engaged in the manufacturing and sale of branded traditional Chinese medicines.
The announcement states that this transaction will enable JBM Healthcare to consolidate its control and strategic direction over the target company. This integration of control is expected to allow JBM Healthcare to streamline corporate governance and decision-making processes, thereby enhancing administrative and operational efficiency. It is anticipated that this move will drive the long-term growth and stability of the target company, ultimately improving its market position and overall value.
For Jacobson Pharma, the sale of the shares to JBM Healthcare allows it to realize a financial gain on its investment in the target company, converting a non-controlling equity stake into liquid funds. The proceeds from the sale are intended to be redeployed by Jacobson Pharma for general working capital purposes.
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