China General Technology To Acquire Henan Topfond Pharmaceutical
This article was originally published in PharmAsia News
Henan Topfond Pharmaceutical Group will be transferring all its stake in Henan Topfond Pharmaceutical to state-owned China General Technology (Group) Holding (Genertec). Topfond Pharmaceutical needs funds urgently, while cash-rich Genertec has no pharmaceutical assets. The latter has been courting another drug company, Huabei Pharmaceutical, for some time but without success. According to sources, Genertec will inject approximately 3 billion yuan into Topfond to incorporate it as a development platform for pharmaceutical business. However, the deal needs the approval of State-owned Assets Supervision and Administration Commission of the State Council. To date, both parties have not signed any official collaboration agreement. (Click here for more - Chinese Language)
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China General Technology and Henan Topfond Pharmaceutical Group are still waiting for the approval of State-owned Assets Supervision and Administration Commission of the State Council for their restructuring (PharmAsia News, Jun. 2, 2008). According to the agreement, China General Technology will inject the initial funds into Topfond when the business registration changes. The delay is putting pressure on the latter's finances, whose liabilities have hit RMB 1.7 billion. When questioned about whether the deal will go through, Topfond expressed confidence in getting the approval as the restructuring represents transfer between state-owned assets. With total equity of RMB 2.6 billion and net assets of RMB 800 million, the firm's assets-liabilities ratio of 65 percent is still within the normal range. (Click here for more - Chinese Language)
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