China Animal Husbandry to waive rights in Zhongpu Bio, potentially losing control

China Animal Husbandry Industry Company Limited (CAHIC) will waive its pre-emptive rights to acquire a 4.04% stake in its controlling subsidiary, Zhongpu Biopharmaceutical Co., Ltd. (Zhongpu Bio). This stake, held by CITIC Agriculture Technology Co., Ltd., is offered for sale at no less than RMB 17,514,300. The decision means Plerk Biotechnology Co., Ltd. (Plerk) or another third party can acquire the shares.

Plerk, which already holds a 46.97% stake in Zhongpu Bio, intends to subscribe for these shares. If Plerk acquires the 4.04% stake, Zhongpu Bio will cease to be a controlling subsidiary of CAHIC. CAHIC currently holds a 48.99% interest in Zhongpu Bio.

The financial implications of waiving these rights are expected to exceed the board's approval authority, with the final impact on CAHIC’s 2025 financial results to be determined after an audit. The proposal was approved by CAHIC’s board on November 13 and is now submitted for shareholder approval on December 1.