Sinopharm to acquire 80-% stake in Aurobindo's China subsidiary
11 Jan 2011
Aurobindo Pharma today said that it had entered into a deal to divest majority stake in its Chinese subsidiary to Sinopharm, China's largest pharmaceutical and healthcare group, for an undisclosed sum.
In a statement today, the company said it has entered into a definitive agreement with China National Pharmaceutical Group Corporation (Sinopharm) to divest its stake in its subsidiary Aurobindo (Datong) Bio Pharma Co Ltd, China (ADBPL), subject to regulatory approvals.
Initially, Sinopharm will buy 51-per cent stake in ADBPL, takin g it eventually to above 80 per cent.
"After acquisition of 51 per cent equity in ADBPL, the investors will further infuse capital to enhance its shareholding to 80.50 per cent, reducing APL share in the JV to 19.5 per cent," it said.
The shares would be acquired through Sinopharm Weiqida Pharmaceutical Co Ltd, a Sinopharma subsidiary.
ADBPL manufactures 6APA, a derivative of Penicillin-G with the bulk of its production being consumed by Aurobindo Pharma Limited (APL) India.
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