The chairman of the company said that the transaction was conducted with reference to the valuation of similar companies in the market, and there was no fire sale. Recently, Watson Biotechnology proposed to sell the equity of its subsidiary company Shanghai Zerun, but the price was too low, which aroused investors' doubts. Many investors said that this price was harmful to the interests of investors. Three days after the incident, Watson Biotech also announced the cancellation of the previously announced equity transaction plan. Later, the chairman of Watson Biotech told the media that the purpose of this transaction was mainly to introduce external investors, solve the company's financial problems, and also increase the company's clinical capabilities. Unfortunately, due to poor communication in the early stage, some investors opposed the deal, so the deal was eventually cancelled.
As for the issue of transaction price, the chairman also responded that the transaction price is calculated based on the valuation of some other companies in the market, because companies similar to Shanghai Zerun are basically 3 billion yuan. So the total valuation of Shanghai Zerun Company in this transaction is 3.5 billion yuan, and the price of the traded equity is also around 1.1 billion, so we did not sell the equity at a low price, but only traded it at the same market price. However, this valuation is not recognized by some investors. Some investors believe that Zerun should be compared to Xiamen Wantai. This company has a valuation of 80 billion, so obviously the actual valuation is different from the valuation recognized by investors. It was so similar that it caused controversy.
Relevant financial people also said that the dispute that arose in this transaction was mainly because Watson, as a listed company, did not communicate too much with investors during the equity transaction, which led to the dispute between the two parties. Such a big contradiction.
It is reported that the main product currently developed by Zerun Company is the cervical cancer vaccine, but the launch time of this product is still very uncertain, and more than 1 billion in funds need to be disclosed, so the company has to introduce other products. Investors got involved, but apparently they didn't approve of the deal.