China Resources Pharmaceutical 2.5 billion to set up investment funds | on the bid for Kantle China

For the China Resources Pharmaceutical, the preparation of equity investment funds, apparently hope that through the acquisition of new business companies, to help performance for the other hand, competitors in the back of the step by step, but also to its Dare not take it lightly.

October 25, China Resources Pharmaceutical Announcement, the company wholly-owned subsidiary of China Resources Pharmaceutical (Shantou) and other interested partners, including Han Wei Hua You, Han Wei Hua De, China Resources 39 and China Resources Shuanghe, on the joint investment of 2.5 billion Yuan to set up a fund for consultation.

The fund will be principally engaged in equity investment in China's pharmaceutical industry, which is committed to a total of HK $ 3.0252 billion, representing approximately 12.21% of the total commitment of the Fund. The initial term of the fund is five years from the date of the establishment of the fund, The approval of the meeting may be extended for one year and the extension may expire for a further year, but the total duration of the fund shall be until August 2026.

It is reported that China Resources Pharmaceutical (Shantou) will be the implementation of the general partner in the fund, responsible for the fund investment, management, use and disposal of assets. Shenzhen Han Wei Huake equity investment will serve as fund managers and entrusted managers, responsible for the fund Investment management, fund information disclosure and filing and other regulatory matters.

Obviously, the preparation of equity investment funds, China Resources is hoping through the acquisition of new business companies, to help for performance. With 2016 drug Circulation in the field of change and regulation of the advance, more advanced medicine The integration and reorganization of the industry, the expansion of China Resources Pharmaceutical has become more apparent.Of a week ago, Shanxi Coal Group and China Resources Group, Shanxi Taihang Industrial Investment Fund officially signed a cooperation framework agreement, open subordinate enterprises - Reconstruction of the hospital.

October 20, 2016, China Resources Pharmaceuticals landed on the Hong Kong stock market, according to the plan, China Resources Pharmaceutical in the pre-IPO funds raised, 45% will be used for the acquisition, 15% for the mainland warehouse and logistics center, 10% for research and development, 10 10% for reimbursement of bonds and 10% for general working capital. If the maximum fundraising amount is HK $ 15.6 billion, China Resources will invest more than $ 9 billion in pharmaceutical business.

Prior to this, China Resources in the country's pharmaceutical business network layout is not perfect, and after the listing, it is non-stop development of mergers and acquisitions. According to China Resources Pharmaceutical's plan, its intends to acquire through the merger of large distribution network, to cover the country by 2020. China Resources Pharmaceutical In its prospectus, said its M & A record shows 'strong and proven integration.'

According to the 2017 semi-annual report, China Resources Pharmaceutical total earnings of 82.737 billion Hong Kong dollars, the profit margin of 12.528 billion Hong Kong dollars, up 6.6% year on year growth of 9.4%, pharmaceutical, distribution and retail sales of the three main business accounted for 13.9% And 2.6%.

July 2017, China Resources Shaanxi Pharmaceutical Co., Ltd. announced its participation in Shaanxi Province, 'two votes system' distribution enterprise The results show that China Resources has entered the vast majority of prefecture-level cities in Shaanxi Province, the distribution business covering a total of up to 307 medical institutions, while its predecessor for the Shaanxi Kang Pharmaceutical Co., Ltd., China Resources Pharmaceutical in Shaanxi new The formation of the holding subsidiaries.

After three months, Wuhan Saili Si Medical Technology Co., Ltd. issued a notice, China Resources Shandong Pharmaceutical Co., Ltd., Shandong Saili Si Medical Technology Co., Ltd. Commonwealth and Qingdao Huangdao District Center hospital Signed the "Regional Inspection Center (Intensive Service) project contract." China Resources Shandong, Shandong Cypriot Consortium will provide centralized inspection and supply of test reagents and consumables for Qingdao Huangdao District Central Hospital. year.

In the first half of 2017, China Resources Pharmaceuticals entered into Jiangxi, Hainan, Qinghai and Xinjiang by means of mergers and acquisitions in the first half of 2017. In the first half of 2017, China Resources Pharmaceuticals, A number of provinces, and completed a number of municipal projects mergers and acquisitions to consolidate the regional competitive advantage.As of the first half of 2017, China Resources Pharmaceutical distribution network has covered 27 provinces.

Oct. 11, Bloomberg reported that, according to trading sources, the US pharmaceutical distributor Kandel's China business bid will enter the second round.The source shows that private equity (PE) company source capital and state-owned giant Shanghai Pharmaceutical Group The stock company has already conducted a second round of bidding, the price is expected to 1 billion US dollars.

Subsequently, the Shanghai Pharmaceutical issued a notice, said the business has been submitted to the first round of the second round and the second round of Quartet, the current project is still in the non-exclusive auction stage, whether to bid for the success of the remaining uncertainty.

Kandel is currently ranked eighth in China's pharmaceutical distributors, and its performance in China has risen in recent years, especially with its distribution business. According to Kandel's official website, Set up a national distribution platform consisting of 15 logistics centers and carried out local direct sales business in 11 major cities such as Shanghai, Beijing, Shenyang and Dalian. The service scope includes 322 cities nationwide and covers local hospitals, retail pharmacy , Modern access, subordinate business and other channels.While for China Resources Pharmaceutical, if the drug once the Kondler China business income in the bag, will be more than themselves, to become China's second largest commercial circulation giant.

Holding 9 billion capital of China Resources Pharmaceutical is clearly not short of money, and to seek new growth points, such as China Resources Pharmaceutical such a large circulation enterprises frequent accidents, is bound to accelerate the circulation of industry concentration, and by virtue of smooth and efficient upstream and downstream industries Chain to achieve high-speed development, thus accelerating the elimination of small businesses out to enhance the industry concentration.

In the semi-annual report, China Resources Pharmaceutical said it will use the industry consolidation opportunities, through strategic mergers and acquisitions to speed up the acquisition of high-quality resources to achieve epitaxial growth, and through the health industry fund to cultivate new business growth point.

The pharmaceutical business will selectively acquire products that have a differentiated product portfolio or are complementary to existing products through strategic investments in high growth areas such as cardiovascular, anti-tumor, and biopharmaceuticals.

Pharmaceutical distribution and retail business, will be through the investment or the acquisition of hospitals and other medical institutions have a strong relationship between the leading regional distribution of retail enterprises to enhance the breadth and depth of business coverage.