Zhitong Financial APP News, Shanghai Fosun Pharmaceutical (02196) and Fuxing International (00656) announced that on October 26,2021: Shanghai Fosun Pharmaceutical Industries, a subsidiary of the company, entered into equity transfer agreements with the selling shareholders respectively. Shanghai Fosun Pharmaceutical Industry agreed to buy a total of about 32.52% of its target company Chengdu Antejin Biotechnology Co., Ltd. from the selling shareholders for a total of about 1.108 billion yuan in cash.
It is understood that the target company is a unique polysaccharide-protein multivalent combination of patented vaccine research and production enterprises, focusing on the research and development of bacterial vaccines.
On October 26th, Shanghai Fosun Pharmaceutical Industries entered into a capital increase agreement with the target company and existing shareholders. The content is related to, among other things, that Shanghai Fosun Pharmaceutical Industries intends to subscribe for 47.9586 million yuan of the new registered capital of the target company at the price of 2.898 billion yuan of its subsidiary Yalifeng, accounting for 60% of the total enlarged equity of the target company after the completion of the capital increase.
After the completion of the acquisition and capital increase, Shanghai Fosun Pharmaceutical Industry will hold about 73.01% of the total expanded equity of the target company, and the target company will become a subsidiary of Shanghai Fosun Pharmaceutical and Fosun. Shanghai Fosun Pharmaceutical Industry will hold a 100% stake in Yalifeng through the target company.
On October 26, 2021, Shanghai Fosun Pharmaceutical Industries issued a number of commitment letters to the sale option holders, according to which Shanghai Fosun Pharmaceutical Industries granted each sale option holders a sale option, according to some of the conditions set out in the commitment letter, after the completion of the transaction under the capital increase agreement but no later than December 31, 2026 Holders of the sale option have the right to require Shanghai Fosun Pharmaceutical Industries to purchase a total of no more than about 18.80 per cent of the shares in the target company held by them at that time after the completion of the acquisition.
The announcement said that the completion of the acquisition and capital increase will help to strengthen the research and development capability and follow-up product reserves of Shanghai Fosun Pharmaceutical Group's vaccine business.