WuXi Agrees to $1.6 B Deal; L'Occitaine IPO

123jump.com Staff
26 Apr, 2010
New York City

Stocks in Hong Kong closed higher tracking gains in international markets but indexes in Shanghai declined after regulators tightened oversight of the property developers. Charles River Labs agrees to acquire WuXi Pharma $1.6 billion. L

[R]8:00 PM Hong Kong, China – Stocks in Hong Kong closed higher tracking gains in international markets but indexes in Shanghai declined after regulators tightened oversight of the property companies. WuXi Pharma agreed to be acquired by Charles River Laboratories for $1.6 billion. L’Occitaine International SA prepares to sell 25% of the company in a Hong Kong listing and raise $710 million.[/R]

Stocks in Shanghai declined and in Hong Kong closed higher tracking the gains in the international markets. Chinese real estate developers faced tighter scrutiny after regulators stepped up oversight.

The China Securities Regulatory Commission has asked more details of financing at 41 companies and passed on this information to the Ministry of Land and Resources to land and zoning compliance.

Hang Seng index in Hong Kong increased 342.57 or 1.61% to 21,587.06 and CSI 300 index in China lower 18.01or 0.56% to 3,172.00.

WuXi Pharma Tech (Cayman) Inc agreed to be acquired by Charles River Laboratories International Inc for $1.6 billion. Charles River agreed to pay $21.25 a share for the company’s American Depository Receipt, 28% premium to the closing price on Friday April 23.

Charles River will pay $11.25 in cash and $10 in stock for WuXi, in a largest takeover of a Chinese company.

L’Occitaine International SA, the skin care and beauty supplies retailers is expected to price its initial public offering in Hong Kong on April 30 and raise as much as HK$5.5 billion or $710 million.

The France based retailer with twin headquarters in Luxembourg and Geneva plan to sell 25% of the company or 364 million shares. Each share is expected to price between HK$12.88 and HK$15.08 according to the prospectus.

The company generated 35% of its total sales from Japan, Hong Kong and Taiwan. Sales in 2009 were 462.7 million euros and net income in the year was 66.4 million euros.

Shanghai Movers

China Southern Airlines Company Limited fell 0.5% to 8.95 yuan after the carrier posted increase in profits in the first quarter as the domestic demand and investment revenue increase.

China COSCO Holdings Company Limited rose 0.8% to 12.18 yuan after the operator of dry-bulk ships fleet said 2009 net loss of 7.54 billion yuan compared to net profit of 10.8 billion a year ago.

China CITIC Bank Corporation Limited fell 3.0% to 6.14 yuan after the investment company said on Monday it plans to form an auto financing venture with its foreign shareholder BBVA of Spain.

Gemdale Corporation rose 0.09% to 11.69 yuan after the developer was downgraded to “buy” from “strong Buy” at Ping An Securities Co.

Kweichow Moutai Co., Ltd the producer of spirits fell 4.2% to 137.76 yuan.

Sany Heavy Industry Co., Ltd dropped 0.6% to 30.00 yuan after the maker of machinery for handling concrete and Inner Mongolia Yitai Coal Co announced Hong Kong initial public offerings that could raise more than $1 billion each.

Yanzhou Coal Mining Company Limited the producer of the fuel rose 2.8% to 21.91 yuan.

HK Movers

China Oilfield Services Limited the offshore oil producer gained 4.5% to HK$11.14.

China Shenhua Energy Company Limited the coal producer gained 3.4% to HK$35.65.

Foxconn International Holdings Limited added 3.0% to HK$7.39.

Hang Lung Properties Limited gained 4.6% to HK$30.20.

Li & Fung Limited the supplier to companies rose 1.7% to HK$38.85.