Truevera was engaged to perform an independent valuation on an ASX listed biotech company with subsidiaries in Suzhou, P.R.C and Hong Kong for the purpose of an investment from a Hong Kong private equity fund, which the appointment of a Truevera nominee as an independent director to the joint venture lead.

Challenge

Truevera was engaged by the ASX listed company to undertake a valuation for the purposes of forming a value of the investment by a Hong Kong private equity firm. 

Solution

Truevera used various valuation methods in relation to the subsidiaries. We note in some instances information was incomplete and a lack of transparency was apparent, therefore several researched assumptions were required to be made in order to provide a sufficient valuation to be relied upon by the investor in order to form a Joint Venture. 

Results

Truevera delivered a valuation of both the Hong Kong and Suzhou entities that both the target and investor agreed, and the transaction proceeded. Post transaction, a nominee from Truevera was appointed as an independent director of the joint venture.