Sinopharm Plans to Acquire 60% Equity Interest in the China National Scientific Instruments and Materials Co., Ltd. Integrate Internal Resources and Create a New Strategic Sector
11 Jul 2018
(July 11, 2018 – Hong Kong) Sinopharm Group Co. Ltd. (Stock Code: 1099.HK, “Sinopharm” or the “Company”), the biggest wholesaler and retailer of pharmaceutical and healthcare products, as well as a leading supply chain service vendor in China, is pleased to announce that, on 11 July 2018, the Company and China National Pharmaceutical Group Co., Ltd. (“CNPGC”), the controlling shareholder of the Company entered into the Asset Purchase Agreement.
Pursuant to that, the Company will acquire 60% equity interest in China National Scientific Instruments and Materials Co. Ltd. (“CSIMC”) held by CNPGC, at a consideration of RMB5,107,890,720, which will be satisfied by issue of Consideration Shares by the Company to CNPGC under General Mandate at the issue price of RMB24.97 per Consideration Share. Upon the completion of the Acquisition, CSIMC will become a subsidiary of the Company. The equity interest of Sinopharm held by CNPGC and its subsidiaries will increase to 59.86%.
CSIMC is now the core enterprise of scientific instruments and medical devices under CNPGC. In 2015, 2016 and 2017, its sales revenue reached RMB16.26 billion, RMB22.38 billion and RMB30.71 billion respectively; its net income attributed to shareholders reached RMB 287 million, RMB 328 million and RMB 489 million respectively and remained a rapid growth during the past three years.
The Company commented, Chinese medical device industry is in a period of rapid development that offers plenty of opportunities. The Acquisition will help further enhance the Company's competitiveness in medical device industry, combine the Target Company's superior product structure and business models with the Company's existing national distribution network, further expand the Company's share in the medical device distribution market and strengthen the Company's comprehensive service capability in medical health industry, as an important part of the Company's overall strategy for the future.