Jiangsu Nanfang Medical Co., Ltd. cancelled the acquisition of 30.97% stake in Jiangsu Vanguard Pharmaceutical Co., Ltd. from a group of sellers.
January 09, 2019
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Jiangsu Nanfang Medical Co., Ltd. (SHSE:603880) agreed to acquire 70% stake in Jiangsu Vanguard Pharmaceutical Co., Ltd. from a group of sellers for CNY 1.1 billion on June 8, 2018. A total of 64.33 million shares will be issued as consideration for 42.42 million shares of Jiangsu Vanguard. The consideration shares will be subject to a lock up period of 12 months since issuance date.
As of December 31, 2017, Jiangsu Vanguard reported total assets of CNY 1.1 billion and operating income of CNY 359.5 million. Approval from the shareholders’ of Jiangsu Nanfang and the CSRC is still pending. Shareholders of Jiangsu Vanguard Pharmaceutical approved the deal on June 27, 2018. The transaction was approved by the 22nd meeting of the 2nd directorate of Jiangsu Nanfang Medical on July 6, 2018. On January 4, 2019, Yao Junhua and Li Jianxin terminated the deal. Sinolink Securities Co., Ltd. (SHSE:600109) acted as financial advisor to Jiangsu Nanfang Medical.
Jiangsu Nanfang Medical Co., Ltd. (SHSE:603880) cancelled the acquisition of 30.97% stake in Jiangsu Vanguard Pharmaceutical Co., Ltd. from a group of sellers on January 10, 2019. The 26th meeting of the 2nd Directorate of Jiangsu Nanfang Medical Co., Ltd. approved the motion regarding the cancellation. In order to adapt to changes in industry policies and market environment, Jiangsu Vanguard Pharmaceutical Co., Ltd. needs to adjust its development strategy and business plan, and this may have a significant impact on the cooperation and long-term goals of the present transaction. Therefore, Jiangsu Nanfang Medical Co., Ltd. is required to pay full attention to the above changes. In order to fully protect the interests of listed companies and all shareholders, and fully communicate with the counterparties, Jiangsu Nanfang Medical Co., Ltd. believes that Jiangsu Vanguard Pharmaceutical Co., Ltd.'s development strategy and business plan adjustment arrangements and the restructuring and long-term goals are conflictive.
Jiangsu Nanfang Medical Co., Ltd. is a China-based company which is mainly engaged in manufacture and sales of medical dressings and pharmaceutical products. The Company is mainly engaged in research and development, manufactures and sales of transdermal products, medical tape and bandages, sports protection products, first-aid kits, nursing products and others. The Companyâs main products include Band-Aid, patches, medical tapes, plaster dressings, sports protection products, first-aid kits, care products and other products. The Companyâs brands include MIAO-SHOU, Oushun and others.