3SBio (1530 HK)'s Spin-Off and Listing of Mandi Inc.
Pharma-Play 3SBio Inc (1530 HK) has announced the spin-off and listing of 87.16%-held Mandi on the HKEx.
3SBio will distribute its stake in-specie. There will be a concurrent global offering, the details of which are still to be fleshed out.
Mandi, a “ hair loss and weight management treatments” solutions provider, accounted for 17% of 3SBio’s revs in the 1H25, and 12.5% of profit.
The Trade:
Often, the sum of the parts is larger than the whole. This may still hold here.
However, given the size of Mandi - relative to 3SBio - higher market multiples may have a limited impact on the overall valuation.
My calcs suggest 3SBio is fairly valued here. 3SBio is up 450% in the past 12 months.
Keep reading with a 7-day free trial
Subscribe to Hong Kong/China M&A/Events to keep reading this post and get 7 days of free access to the full post archives.