December 30 -- Zhejiang Conba Pharmaceutical (600572.SH) plans to invest a total of 65.05 million yuan to acquire an 84 percent stake in Yunnan Xiongye Pharmaceutical (Xiongye Pharma), reports yicai.com, citing a company filing.

Conba Pharmaceutical will first inject 49.58 million yuan to acquire a 72.91 percent stake in Xiongye Pharma, before acquiring an 11.09 percent stake from Yunnan Xiongye Group for 15.47 million yuan.

Xiongye Pharma had total assets of 51.79 million yuan and negative net assets of 2.27 million yuan as of end 2010. It posted revenue of 7.87 million yuan and a net loss of 2.16 million yuan in 2010.

During the first 10 months of 2011, Xiongye Pharma generated revenue of 5.10 million yuan and recorded a net loss of 4.09 million yuan.

Conba Pharmaceutical said the acquisition will improve the company product structure and expand the scale of its business.

Shares of Zhejiang Conba Pharmaceutical rose 2.32 percent to close at 7.07 yuan per share today.