Shanghai Pharmaceuticals Holding Co., Ltd. (SHSE: 601607) revealed that agreement has been inked with Dongying Pharmaceuticals Co., Limited (BVI) for equity transfer to be carried out in phases.
As the first step, Shanghai Pharmaceuticals will spend CNY 614.62 million in acquiring a 79% stake in Big Global Limited (Hong Kong) wholly owned by Dongying Pharmaceuticals (BVI), thus controlling Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. wholly owned by Big Global. The transaction has been completed.
The second step, Shanghai Pharmaceuticals will continue purchasing a 10% stake in Big Global in the following three to six months, meanwhile put additional investment of CNY 100 million in the target company, thus holding its 90.25% stake. Big Global is estimated to be worth CNY 778 million.
Dong Ying (Jiangsu) Pharmaceutical is a producer of high-end generic drugs, having three production lines respectively for lyophilized powder for injection, bulk drugs and solid preparations.
