Guizhou Xinbang Pharmaceutical Co., Ltd. agreed to acquire 98.25% stake in Guizhou Kekai Medicine Co., Ltd. from Zhang Guanfu, Ding Yuanhuai, An Huailue and Ma Yide for approximately CNY 1.6 billion.
August 27, 2013 at 12:00 am EDT
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Guizhou Xinbang Pharmaceutical Co., Ltd. (SZSE:002390) agreed to acquire 93.01% stake in Guizhou Kekai Medicine Co., Ltd. from Zhang Guanfu, Ding Yuanhuai, An Huailue and Ma Yide for approximately CNY 940 million in stock on August 27, 2013. Guizhou Xinbang will acquire 46.03 million shares i.e., 45.37% stake from Zhang Guanfu by issuing 28.14 million shares of Guizhou Xinbang, 30 million shares i.e., 29.57% stake from Ding Yuanhuai by issuing 18.34 million shares, 15.92 million shares i.e., 15.7% stake from An Huailue by issuing 9.74 million shares and 2.41 million shares i.e., 2.37% stake from Ma Yide by issuing 1.47 million shares. As of March 13, 2014, the transaction has been approved by China Securities Regulatory Commission.
As of November 27, 2013, Guizhou Xinbang Pharmaceutical Co., Ltd.'s Board of Directors and Guizhou Kekai Medicine Co., Ltd's shareholders approved the transaction. As of November 28, 2013, the deal terms were amended. Guizhou Xinbang Pharmaceutical will now acquire 98.25% stake in Guizhou Kekai Medicine Co., Ltd. for CNY 1.6 billion in cash and stock. Guizhou Xinbang Pharmaceutical will acquire 93.01% stake on previous terms and will also acquire additional 5.24% by paying CNY 53.2 million in cash. On December 16, 2013, the transaction has been approved by shareholders of Guizhou Xinbang Pharmaceutical Co., Ltd. Southwest Securities Co., Ltd. acted as financial advisor, Beijing Grandway Law Offices acted as legal advisor and BDO China Shu Lun Pan CPAs LLP acted as accountant to Guizhou Xinbang Pharmaceutical Co., Ltd.
GUIZHOU XINBANG PHARMACEUTICAL Co., LTD is a China-based company, principally engaged in the research and development, manufacture and distribution of medical products. The Company operates its businesses through three segments. The Pharmaceutical Manufacturing segment is engaged in the manufacture and distribution of Chinese patent medicines, such as Ginkgo Leaves Tablets. The Pharmaceutical Distribution segment includes rapid wholesale business and medicine retail business. The Medical Services segment is engaged in the provision of medical services. It operates its businesses primarily in domestic markets.
Guizhou Xinbang Pharmaceutical Co., Ltd. agreed to acquire 98.25% stake in Guizhou Kekai Medicine Co., Ltd. from Zhang Guanfu, Ding Yuanhuai, An Huailue and Ma Yide for approximately CNY 1.6 billion.
GUIZHOU XINBANG PHARMACEUTICAL CO., LTD. 
