Beijing Double-Crane Offers New Shares
by Richard Daverman, PhD
ChinaBio Today
Restructures Relationship with Parent Company
Beijing Double-Crane Pharmaceutical Co. Ltd., which trades on the Shanghai exchange, will offer up to an additional 40 million shares of its stock to qualified investors.
A large number of those shares will go to Double-Crane’s parent, Beijing Pharmaceutical Group, which will exchange the shares for the remaining portions of Double-Crane’s five operating divisions that are still in BPG’s hands. After the transaction, Double-Crane will own 100% of the five operating divisions, and BPG will own a slightly larger number of shares of Double-Crane. Double-Crane will also receive some real-estate assets.
The exact number of shares was not released, though BPG will be restricted to a maximum of 30 million shares.
In addition to the BPG shares, Double-Crane will offer shares to outside investors. The company expects to raise 449.42 million RMB ($58.98 million), which will be used to expand Beijing Double-Crane Pharma's transfusion production lines.
At present, Beijing Pharmaceutical Group owns a 49% stake in Beijing Double-Crane, enough to be considered the controlling shareholder. The realignment is thought to be part of the government’s restructuring of its state-owned pharmaceutical companies.
Beijing Double-Crane Pharmaceutical produces, processes and sells pharmaceutical products, mainly in three broad areas: cardiovascular medicines, endocrine secretion drugs and infusion solutions. In 2006, the company had revenues of 4.05 billion, a decline of 12% from the previous year. Earnings were also 12% lower, at 165 million RMB. Beijing Double-Crane blamed the downturn on a change in the number of consolidated entities under its control.
The shares of Beijing Double-Crane ended the day at RMB 18.07. There are 441 million shares of the company outstanding (before the restructuring), giving the company a market capitalization of 8 billion RMB ($1 billion).
RELATED READING:
- China Aims to Modernize Traditional Chinese Medicine
- China Sets Lofty Goals for its Bioindustry
- Healthcare Park to be Built in Suzhou, China
ChinaBio Today is a regular contributor to BioHealth Investor
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ChinaBio Today
Restructures Relationship with Parent Company
Beijing Double-Crane Pharmaceutical Co. Ltd., which trades on the Shanghai exchange, will offer up to an additional 40 million shares of its stock to qualified investors.
A large number of those shares will go to Double-Crane’s parent, Beijing Pharmaceutical Group, which will exchange the shares for the remaining portions of Double-Crane’s five operating divisions that are still in BPG’s hands. After the transaction, Double-Crane will own 100% of the five operating divisions, and BPG will own a slightly larger number of shares of Double-Crane. Double-Crane will also receive some real-estate assets.
The exact number of shares was not released, though BPG will be restricted to a maximum of 30 million shares.
In addition to the BPG shares, Double-Crane will offer shares to outside investors. The company expects to raise 449.42 million RMB ($58.98 million), which will be used to expand Beijing Double-Crane Pharma's transfusion production lines.
At present, Beijing Pharmaceutical Group owns a 49% stake in Beijing Double-Crane, enough to be considered the controlling shareholder. The realignment is thought to be part of the government’s restructuring of its state-owned pharmaceutical companies.
Beijing Double-Crane Pharmaceutical produces, processes and sells pharmaceutical products, mainly in three broad areas: cardiovascular medicines, endocrine secretion drugs and infusion solutions. In 2006, the company had revenues of 4.05 billion, a decline of 12% from the previous year. Earnings were also 12% lower, at 165 million RMB. Beijing Double-Crane blamed the downturn on a change in the number of consolidated entities under its control.
The shares of Beijing Double-Crane ended the day at RMB 18.07. There are 441 million shares of the company outstanding (before the restructuring), giving the company a market capitalization of 8 billion RMB ($1 billion).
RELATED READING:
- China Aims to Modernize Traditional Chinese Medicine
- China Sets Lofty Goals for its Bioindustry
- Healthcare Park to be Built in Suzhou, China
ChinaBio Today is a regular contributor to BioHealth Investor
_______________
posted by Nico at
4:56 PM
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