Taiantang Pharma To Acquire Chaozhou Shanyuan Investment


December 5 -- Guangdong Taiantang Pharmaceutical (002433.SZ), a maker of skin and cardiovascular drugs, intends to acquire Chaozhou Shanyuan Investment for 136 million yuan, reports yicai.com, citing a company filing.

Chaozhou Shanyuan Investment currently holds a 52.4 percent stake in Guangzhou Hongxing Group.

The acquisition will thus allow Taiantang Pharma to hold an indirect stake in Hongxing Group through the acquisition of Shanyuan Investment.

Shanyuan Investment, which had total assets of 143 million yuan and net assets of 20.73 million yuan through the end of October, reported sales revenue of 40.79 million yuan and net profit of 6.02 million yuan during the first 10 months.

Guangzhou Hongxing Group is considered to be a well known brand in China. The company is a producer of Chinese patented medicines, and manufactures 94 types of products.

Taiantang Pharmaceutical raised 690 million yuan from its initial public offering in June 2010.

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