Imexpharm faces delisting risk as Chinese investor moves to take control

Shares of Imexpharm Pharmaceutical JSC (HoSE: IMP) could face delisting risks as a Chinese pharmaceutical group moves to raise its ownership to a controlling level, potentially reducing the company’s free float below regulatory requirements.

Lian SGP Holding Pte. Ltd. has launched a public tender offer to acquire up to 77.94% of Imexpharm’s charter capital, equivalent to 77.96% of voting shares.

The offering price is VND57,400 ($2.18) per share, valuing the deal at about VND6.9 trillion ($261.46 million). The buyer is a subsidiary of Livzon Pharmaceutical Group Inc.

As of end-2025, Imexpharm’s shareholder structure was already highly concentrated, with South Korea’s SK holding 64.81% and Vietnam Pharmaceutical Corporation (Vinapharm) owning 22.04%, leaving only about 13% of shares in free float.

In addition to acquiring SK’s stake through negotiated deals, the Chinese group is buying shares on the market to reach nearly 78% ownership. If completed, the two largest shareholders – Lian SGP and Vinapharm (UPCom: DVN) – would together control close to 99% of the company.

Such a structure could cause Imexpharm to fall short of Vietnam’s requirements for a public company, which mandate that at least 10% of voting shares be held by a minimum of 100 non-major shareholders. Failure to meet this threshold could force the company to delist unless corrective measures are taken.

A similar situation has emerged at Hau Giang Pharmaceutical JSC (DHG Pharma, HoSE: DHG), where major shareholders including Taisho Pharmaceutical and the State Capital Investment Corporation (SCIC) hold a combined stake exceeding 94%, leaving insufficient free float to meet listing requirements. The company said it is working with major shareholders to address the issue.

Specifically, according to the consolidated shareholder list with the final registration date of March 23, 2026, Hau Giang Pharmaceutical has a total of 4,185 shareholders. Of these, Taisho holds 51.01% of the shares, the SCIC owns 43.31%, and the remaining 4,183 shareholders account for 5.68%.

Growth targets remain intact

Despite ownership changes, Imexpharm is pressing ahead with growth plans. The company will hold its AGM on April 22, targeting revenue of VND3.2 trillion ($121.5 million) in 2026, up 9.8%, and pre-tax profit of VND502 billion ($19.06 million), up 12.5%.

If achieved, this would mark a fifth consecutive year of growth and new record highs.

The company's management said it will focus on selective expansion, improving revenue quality, and strengthening operational efficiency rather than pursuing broad-based growth.

This includes restructuring its over-the-counter (OTC) distribution channels in line with new tax regulations, prioritizing compliant pharmacies and retail chains, while expanding its hospital (ethical/tender channel or ETC) segment across public and private healthcare systems with a more diversified product portfolio.

In 2025, Imexpharm reported revenue of VND2.44 trillion ($92.68 million) and pre-tax profit of VND446 billion ($16.93 million), both up about 10% year-on-year, though achieving only 90-92% of the year's targets.

The company has proposed a cash dividend of 6% for 2025 and expects a payout ratio of 5-8% for 2026.

On the Ho Chi Minh Stock Exchange (HoSE), IMP shares closed Monday at VND55,000 ($2.09) apiece.