China National Accord Medicines Corporation Ltd. (SZSE:000028) agreed to acquire Guangdong Dong Fang Uptodate & Special Medicines Co. from Sinopharm Group Co.,Ltd. (SEHK:1099) for approximately CNY 210 million in stock on March 9, 2016. Under the terms of the deal, 3.92 million shares in China National Accord Medicines will be issued as consideration at issue price of CNY 53.8. In a related deal, China National Accord Medicines Corporation Ltd. agreed to acquire 51% stake in Guangdong South Pharmaceutical Foreign Trade Co., Ltd. from China National Pharmaceutical Foreign Trade Corporation in stock and 49% stake in South Pharmaceutical Trade from Fu Yuequn and 10 other individuals in cash on March 9, 2016, 100% stake in Foshan Nanhai Pharmaceutical Group Co., Ltd. and Sinopharm Holding Guoda Drug Store Co., Ltd. from Sinopharm Group Co.,Ltd. In a related deal, Shanghai Shyndec Pharmaceutical Co., Ltd. signed an asset transfer agreement to acquire 51% in three pharmaceutical companies, 25% stake in Pharmaceutical Co, and Pingshan base from China National Accord Medicines Corporation Ltd. for CNY 2.5 billion on March 9, 2016. As on September 28, 2016 Sinopharm Group Co.,Ltd. will receive 3.97 million shares.

For the year ended December 31, 2015, Guangdong Dong Fang Uptodate & Special Medicines reported total revenue of approximately CNY 990 million, total assets of approximately CNY 510 million, net income of CNY 18.3 million and total equity of approximately CNY 130 million. The transaction is subject to approval from State-owned Assets Supervision and Administration Commission of the State Council, shareholders of China National Accord Medicines and CSRC. The transaction gained the pre-approval of the State-owned Assets Supervision and Administration Commission of the State Council, Board of Directors and shareholders of Sinopharm Group, Board of Directors of China National Accord Medicines. On September 27, 2016, China Securities Regulatory Commission approved the deal. China International Capital Corporation Limited acted as financial advisor, Grandall Law Firm acted as legal advisor and PricewaterhouseCoopers Zhong Tian LLP acted as accountant for China National Accord Medicines Corporation Ltd.

China National Accord Medicines Corporation Ltd. (SZSE:000028) completed the acquisition of Guangdong Dong Fang Uptodate & Special Medicines Co. from Sinopharm Group Co.,Ltd. (SEHK:1099) on December 13, 2016.