China National Biotec Group to acquire controlling stake in Southern Shuanglin Bio-Pharmacy

China National Biotec Group Co., Ltd. has entered into a share transfer agreement with Youngtown ShengBang Yinghao Investment Partnership, Southern Shuanglin Bio-Pharmacy's controlling shareholder. China National Biotec Group plans to acquire 199,878,656 unrestricted shares, representing 21.03% of Southern Shuanglin Bio-Pharmacy's total share capital, for a total of CNY 4,698,728,058.78. This transaction will result in China National Biotec Group becoming the controlling shareholder and China National Pharmaceutical Group Co., Ltd. (SinoPharm) becoming the actual controller of Southern Shuanglin Bio-Pharmacy.

Before this transaction, ShengBang Yinghao held 21.03% of Southern Shuanglin Bio-Pharmacy’s shares, with 16.82% of these shares (159,902,860 shares) being pledged to China Minsheng Bank Co., Ltd., Shanghai Branch. Following the transfer, ShengBang Yinghao will no longer hold shares, and its voting rights agreement with Xizang Zheyanshan Enterprise Management Co., Ltd. and Shen Heping will terminate. The transaction price of CNY 23.51 per share is above 90% of the closing price on the trading day before the agreement, aligning with Shenzhen Stock Exchange guidelines.

The acquisition is contingent on approvals from state-owned assets regulators, anti-monopoly reviews, and confirmation from the Shenzhen Stock Exchange. China National Biotec Group aims to enhance its plasma resource base and consolidate its leading position in the blood products industry. Post-acquisition, China National Biotec Group and SinoPharm have pledged to address any new instances of horizontal competition.