CICC Assists Yunnan Baiyao in Merger with Baiyao Holdings

On July 3, 2019,Yunnan Baiyao Group Co., Ltd. (“Yunnan Baiyao”, “Listed Company” or the “Company”, 000538.SZ) successfully completed its merger with Baiyao Holdings and overall listing. The M&A amounting to RMB54.48 Bn (the “Transaction”)brought forth market-oriented mechanism and system through the mixed-ownership reform and further led to merger with the parent company for overall listing, drawing wide attention across the A-share market. CICC acted as the independent financial adviser to the listed company in the Transaction.

Yunnan Baiyao merged with Baiyao Holdings through share issuance to the three shareholders of the latter, namely Yunnan SASAC, New Huadu Industrial Group Co., Ltd. and Jiangsu Yuwell Technology Development Co., Ltd. The Transaction is the largest completed M&A of A-share companies since 2018 and the largest M&A in A-share pharmaceutical sector in recent 10 years.

Yunnan Baiyao is a time-honored brand both at home and abroad. The merger marked the further deepening of Yunnan Baiyao’s mixed-ownership reform and Baiyao Holdings achieved overall listing through the Transaction. After completion of the Transaction, the listed company will further integrate quality resources, reduce management layers and improve incentive mechanism in a bid to enhance its core competitiveness and profitability.

In the course of the Transaction, CICC with seamless cross-departmental collaboration, designed the overall transaction scheme, accurately seized the market window and led communications with shareholders as well as regulators, effectively facilitating execution of the Transaction. With CICC’s assistance, it took only 110 working days from Yunnan Baiyao’s trading halt in September 2018 to securing approval from the M&A and Restructuring Committee so that the Transaction could be successfully completed at a fast pace and with high quality.

CICC is a people-oriented, leading investment bank with Chinese roots and international reach. It is committed to providing quality value-added financial services for its clients. With extensive capital market experience and seamless domestic and overseas services, CICC will continue to provide first-class financial services to help its clients achieve their strategic goals.