Mitsui Exchanges its Shares in Hutchison MediPharma for Shares in Chi-Med

Hutchison China MediTech Limited ("Chi-Med") (AIM: HCM) today announces that it has signed a subscription agreement (the "Agreement") and completed the exchange of 5,247,493 convertible preference shares held by Mitsui & Co., Ltd. ("Mitsui") in the drug R&D subsidiary of Chi-Med, Hutchison MediPharma Holdings Limited ("Hutchison MediPharma") (representing 12.24% of the share capital of Hutchison MediPharma) for 3,214,404 new ordinary shares in Chi-Med ("Subscription Shares") (representing 5.69% of the enlarged share capital of Chi-Med). Based on the closing mid-market price on 22 July 2015, the value of the Subscription Shares is £54 million/US$84 million (at an exchange rate of 1.5562).

Following completion of the Agreement, the direct shareholding of Chi-Med in Hutchison MediPharma will be 99.75% of the share capital of Hutchison MediPharma with the balance of the shares held by employees of Hutchison MediPharma.

Mitsui first invested in Hutchison MediPharma in November 2010, and made further investments in May and June 2014. As Mitsui holds greater than 10% of the share capital of Hutchison MediPharma, it is considered to be a related party of Chi-Med under the AIM Rules for Companies ("AIM Rules").  The Agreement constitutes a related party transaction pursuant to Rule 13 of the AIM Rules.  Accordingly, the Directors of Chi-Med consider, having consulted with the nominated adviser of Chi-Med, Panmure Gordon (UK) Limited, that the terms of the Agreement are fair and reasonable insofar as the shareholders of Chi-Med are concerned.

About Chi-Med

Chi-Med is a China-based healthcare group focused on researching, developing, manufacturing and selling pharmaceuticals and health-related consumer products.  Its Innovation Platform focuses on discovering and developing innovative therapeutics in oncology and autoimmune diseases.  Its Commercial Platform manufactures, markets and distributes prescription drugs and consumer health products in Asia.

Chi-Med is majority owned by the multinational conglomerate CK Hutchison Holdings Limited (SEHK: 0001).  For more information, please visit: http://www.chi-med.com.

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