Temasek Backed Firms Acquire Stakes in VIVA Biotech Ahead of IPO

A deal for 1.06 billion yuan ($148.7 million) for interests in a division of VIVA Biotech Holdings was reached by organisations funded by Singapore's Temasek and China's HighLight Capital, the pharmaceutical service provider announced late on Sunday.

The agreement comes as the Chinese drug discovery and manufacturing service provider aims to restructure its companies and float the Shanghai company on an onshore stock exchange. It will reduce VIVA Biotech's share in VIVA Shanghai from 100% to about 75.79%.

According to VIVA Biotech, it will redeem convertible notes with the net proceeds in an effort "to settle its outstanding liabilities without occupying its internal resources."

As per the filing, the agreement includes the sale of an existing interest in VIVA Shanghai from Viva Investment, another division of VIVA Biotech, as well as the infusion of funds into VIVA Shanghai by new investors.

Following the transaction, Temasek-owned True Light Capital GP Pte. Ltd. and Temasek-owned Daxue Investments, a division of Temasek Holdings, would jointly own 17.55 percent of VIVA Shanghai.

HLC SPV and Qingdao Hongyi, two entities connected to HighLight Capital, will each receive a 6.66 percent stake as a result of the deal.

According to the filing, VIVA Biotech has started a restructure that will move all assets and staff associated with its early-stage drug discovery business to VIVA Shanghai and remove all assets and personnel associated with drug development and manufacturing services from the Shanghai subsidiary.

Investors in the deal anticipate that VIVA Shanghai's IPO application would be submitted by June 30, 2024.