Guizhou Xinbang Pharmaceutical Co., Ltd. cancelled the acquisition of an additional 19.2% stake in Jiangsu Xinbang Pharmaceutical Co., Ltd.
February 25, 2014 at 11:00 pm EST
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Guizhou Xinbang Pharmaceutical Co., Ltd. (SZSE:002390) agreed to acquire an additional 19.2% stake in Jiangsu Xinbang Pharmaceutical Co., Ltd. for CNY 14.4 million on February 26, 2013. On May 30, 2013, Guizhou Xinbang Pharmaceutical signed a contract to acquire 19.2% stake in Jiangsu Xinbang Pharmaceutical Co., Ltd. As a part of the transaction, Guizhou Xinbang Pharmaceutical Co., Ltd. will acquire 4.8 million shares in Jiangsu Xinbang. Pursuant to the transaction, Guizhou Xinbang will own 95.48% stake in Jiangsu Xinbang Pharmaceutical. The transaction will be financed using the excess funds of Guizhou Xinbang Pharmaceutical. For the period ending May 31, 2012, Jiangsu Xinbang Pharmaceutical reported total assets of CNY 29.97 million, total liabilities of CNY 16.32 million and total net assets of CNY 13.65 million. For the period from January to May 31, 2012, Jiangsu Xinbang Pharmaceutical Co., Ltd reported revenues of CNY 10.5 million and net loss of CNY 1.95 million. The transaction has been unanimously approved by the Board of Directors of Guizhou Xinbang Pharmaceutical.
Guizhou Xinbang Pharmaceutical Co., Ltd. (SZSE:002390) cancelled the acquisition of an additional 19.2% stake in Jiangsu Xinbang Pharmaceutical Co., Ltd. on February 26, 2014.
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.