Chinese pharma giant moves to acquire majority stake in Vietnam’s Imexpharm

The acquisition, to be executed through Livzon's Singapore-based subsidiary Lian SGP Holding Pte. Ltd., would give the group a 64.81 percent stake in Imexpharm, one of Vietnam's leading drugmakers.

According to Livzon, which is listed on both the Hong Kong and Shenzhen stock exchanges, the transaction was formalized in an agreement signed on Thursday.

The deal involves three existing shareholders: South Korea's SK Investment Vina III, Sunrise Kim Investment Joint Stock Company, and KBA Investment Joint Stock Company.

SK Investment is expected to receive over VND4.21 trillion ($162.2 million), while Sunrise Kim and KBA Investment will collect VND862.5 billion (US$33.2 million) and VND652 billion (US$25.1 million), respectively.

The sale price was calculated based on Imexpharm's average market capitalization over the past 30 trading days on the Ho Chi Minh Stock Exchange.

The transaction remains subject to regulatory approval, including compliance with Vietnam's foreign ownership cap. It must also be completed within nine months.

When the deal is done, Imexpharm will become an indirect subsidiary of Livzon, which was founded in 1985 and employs over 9,000 people. 

The company is known for its work in chemical and biopharmaceuticals, traditional Chinese medicine, and active pharmaceutical ingredients.

SK Group became Imexpharm's largest shareholder in 2020 after acquiring shares from Dragon Capital and other institutional investors. 

By the end of that year, it had overtaken Vietnam Pharmaceutical Corporation, which held just over 22 percent, to become the dominant stakeholder. 

Over time, SK and its affiliates raised their combined stake to nearly 65 percent.

Bloomberg reported in late 2024 that SK Group was considering divesting its full stake in Imexpharm as part of a broader portfolio review.

At the company's annual general meeting last week, Imexpharm executives acknowledged the restructuring discussions but sought to reassure shareholders.

"Even if SK decides to divest, we are confident in Imexpharm's ability to continue its independent and sustainable growth," a company representative said.

At the same meeting, shareholders approved a proposal to raise the foreign ownership cap to 77.96 percent of the company's charter capital from 75 percent.

Founded in 1977 and led by general director Tran Thi Dao, a recipient of Vietnam's People's Doctor title, Imexpharm operates four manufacturing plants with 12 production lines certified to meet EU-GMP standards. 

The company is a market leader in antibiotics, holding roughly 10 percent of the domestic share.

Imexpharm has set a target of 15 percent average annual revenue growth through 2030.