On November 20, 2023, Viva Biotech Holdings Group (01873.HK, “Viva Holdings“) announced it has completed the equity financing at both Viva Holdings and its subsidiary Viva Biotech (Shanghai) Ltd. (“Viva Shanghai”), bringing in strategic investors High Light Capital (HLC), together with Temasek and True Light. This transaction will strengthen Viva Holdings and Viva Shanghai’s technological capabilities, enhance the companies’ research and production service capacities and provide diversified services for global startup pharmaceutical companies and medium to large-sized pharmaceutical enterprises.

Viva Holdings provides drug discovery services to biotechnology and pharmaceutical companies worldwide for their pre-clinical stage drug development, and its business also includes providing Chemistry, Manufacturing and Control (CMC) and/or Contract Development and Manufacturing Organization (CDMO) solutions and incubation of biomedical startups.

This transaction involved a number of cross-border issues, including convertible bond at the overseas listed company level, domestic and oversea entities subscribing for newly issued shares of domestic company and acquiring existing shares held by offshore entity. The deal entailed analysis of regulatory rules in different capital markets as well as analysis of several Chinese approvals, such as merger control. This transaction highlights Fangda’s cross-border equity capital markets capabilities, execution expertise and one-firm seamless delivery on behalf of our clients for their most significant complex transactions.

Fangda Partners advised HLC in this transaction. Fangda’s Shanghai and Hong Kong offices collaborated seamlessly to conduct legal due diligence, analyze capital market-related issues, draft, negotiate and finalize the domestic and overseas transaction documents, and assist client in coordinating Viva Holdings’ equity restructuring and Hong Kong Stock Exchange disclosure requirements. The Fangda team on this deal was led by corporate partners Diana Li, Yvette Liu, Arman Lie and Frank Ding and antitrust partner Caroline Huang. Team members included Ryan Li, Chris Zhang, Karen Chan, Brown Lin, Elle Liao, Lu Jia, Lizzie Cheong, Cynthia Zhan, Janet Song and Gordon Chau. In addition, our corporate partner Christina Fu advised Viva Holdings on the overseas documents and Hong Kong Listing Rules compliance, supported by team members Echo Cao and Ferra Wang.