Tianjin Lisheng Pharmaceutical (002393) plans to spend 501.07 million yuan to acquire a 100 percent stake in Tianjin Central Pharmaceutical in order to strengthen its main business, reports yicai.com, citing a company filing.
Of the total, 435.38 million yuan were from the excess funds raised from the company's initial public offering.
Lisheng Pharmaceutical will acquire a 49 percent stake in Tianjin Central Pharmaceutical from Tianjin Pharmaceuticals, and a 51 percent stake in Tianjin Central Pharmaceutical from Tianjin Zhongxin Pharmaceutical.
As Tianjin Pharmaceuticals is the controlling shareholder of Tianjin Zhongxin Pharmaceutical, the acquisition thus constitues a related-party transaction.
Tianjin Central Pharmaceutical has a registered capital of 82.353 million yuan, and is involved in the chemical synthesis of bulk drugs and intermediates, and in the production and sale of Chinese and western medicine preparations, and health care products.
The chemical synthesis of bulk drugs and intermediates, and the production and sale of western medicine preparations are the company's main revenue contributors.
Tianjin Central Pharmaceutical generated revenue of 189.43 million yuan in 2010, and 140.14 million yuan in the first half of 2011.
Net profit hit 32.64 million yuan in 2010, and 20.79 million yuan in the first half of 2011.
