December 20 -- Hainan Haiyao (000566.SZ) said wholly-controlled subsidiary, Haikou Pharmaceutical Factory, plans to acquire a 50 percent stake in Taizhou Yiming Pharma Chemical for 19.5 million yuan, reports Oriental Morning Post, citing a company filing.

The target company, which has a registered capital of five million yuan, mainly produces intermediate medicines.

Haikou Pharmaceutical Factory will buy the shares from two individual shareholders.

According to Hainan Haiyao, the proposed acquisition will help to optimize its industry chain and improve its core competencies.

In addition, Chongqing Tiandi Pharmaceutical, another wholly-controlled subsidiary of Hainan Haiyao, will acquire a 75 percent stake in Yanchen Kaiyuan Pharmaceutical at a price that will be fixed after an audit.

Kaiyuan Pharma researches and produces drug materials. It produces drugs such as cephalosporin.

The proposed acquisition is aimed at improving sales, according to the company.

Source:CapitalVue