China Grand affiliate makes offer to acquire Sinclair Pharma

China Grand Enterprises’ affiliate company Huadong Medicine have made an approach to acquire AIM-listed Sinclair Pharma.

According to a statement from Sinclair released on Thursday, talks are still at a very early stage and there is no certainty that an official offer will be made. The Chinese companies also released a statement on Friday saying that any offer would be likely made in cash.

Sinclair said that the Asian firm should announce their intention to make an offer by 2 August.

The news lifted Sinclair’s shares up 23%, the steepest rise since 2010. China Grand’s affiliate Huadong, of which it owns 41.8%, fell up to 3.3% in Shanghai on Friday.

Sinclair shares also got a boost recently after the aesthetic dermatology products maker said its half-year sales figures had beaten its expectations.

Chief executive Chris Spooner, said they remain optimistic for the rest of the year that the company will see strong and broad-based growth.