First China Pharmaceutical Group Inc (fka FCPG)

[Chargers Beat Writer]

HUGE: 12 listed pharmaceutical companies to set up ten billion yuan fund acquisitions

http://finance.china.com.cn/industry/medicine/disj/20141224/2868335.shtml

December 18, Beijing University of Traditional Chinese Medicine announced that a subsidiary of Beijing Cancer Hospital, Peking University Medical control of the Company Management Ltd., Beijing University Medical Industry Fund Management Co., Ltd. intends to co-sponsored funds through the capital to buy a new milestone milestone Hospital Group and Investment Group, TU Yi capital, held by all or part of any healthy Chinese milestone Hospital Group shares, get 65% stake in a new era hospital group.

It is worth noting that the purchase of assets by way of mergers and acquisitions investment fund, in the A-share listed companies in medicine has become a trend. According to incomplete statistics, including the source of Concord , as one church , medical Dunlop , the constant group including a number of pharmaceutical companies are also involved in the establishment of an investment fund acquisitions.

Ireland eye???secretaries in an interview with reporters, said the acquisition of the target company by way of mergers and acquisitions fund, not only can the company successfully achieved by means of an external force development strategy, can also make these targets by directing funds operate more standardized, lower These are listed on the subject of future risks that may arise after the acquisition, and better protection of the interests of listed companies and investors.

Mergers and acquisitions over 12 billion yuan fund size

Mergers and acquisitions of listed companies has been a hot market. But for mergers and acquisitions, a number of listed pharmaceutical companies to take an indirect approach: namely through the establishment of buyout funds target acquisition, at the right time and then injected into the listed company.
According to Wind statistics, this year, as of December 18, A-share market, participation in the establishment of investment funds listed on the acquisition of pharmaceutical companies have PKU medicine, ophthalmology Ireland, as one church, Tat gene , pharmaceutical thousand sources , source Concord, medical Dunlop, Tiger medicine , the constant group, Dean diagnosis , Levin US Pharmaceutical , Kunming Pharmaceutical , Kin Man Group and so on. The size of this 12 buyout funds listed pharmaceutical companies have established more than 12 billion yuan. It is worth noting that some companies set up a fund for a specific subject, and some companies will set up a fund for a series of mergers and acquisitions.

According to Peking University Pharmaceutical Bulletin, initiated the establishment of the fund is intended to be legally contribute approximately $ 41,228,500 by way of foreign investment, through the purchase of a new era and a new era Hospital Group to increase investment group, uh Yi capital, Chinese health held in whole or in part Milestone Hospital Group shares, obtain milestone Hospital Group 65% stake.

Prior to the source Concord announcement that the company is at home and abroad to seek strategic investments and acquisitions significance to accelerate the pace of development of epitaxial subsidiary companies and the source of Concord Investment Management Co., Ltd., the decision raised no more than 1 billion Yuan funds involved in initiating the establishment of multi-branch buyout funds, through the integration of all aspects of the resources , make full use of fund investment and financing capabilities, acquisition, holding or shareholding companies at home and abroad in line with the development strategy of the project to accelerate the company's downstream industry chain layout. M total fund size of 50 billion, it is understood that this is currently listed pharmaceutical companies in the largest buyout funds.

Help reduce the risk of M & A

It is worth noting that the purpose of the acquisition of some listed companies to set up the fund, is a listed company in order to find a better acquisition target.

Ireland Eye released in March of this year "on the sea front and Shenzhen Oriental Venture Financial Holdings Limited jointly set up the acquisition fund industry consolidation announcement, "intends to use its own funds to 20 million yuan in Shenzhen before the sea Orient Venture Financial Holdings Limited co-sponsored the establishment of the East Irish Sea Shenzhen before the medical industry buyout funds, as specializing in eye care services industry merger integration platform investment fund size of 200 million yuan. In December this year, the company has issued a "health and Yu Dazi in venture capital fund jointly set up M & A investment funds industry consolidation announcement." This time, the size of the fund to expand to 10 million.

In this regard, Ireland Eye secretaries Wu Shijun said that the fund set up earlier this year and Oriental Holdings has now completed the basic cast, voted in 10 projects, the development of good. So, they set up a scale of 1 billion yuan fund in December.

Why take for enterprise development through fund model problem, Wu Shijun said the company has been set up to take mode buyout funds, mainly based on two considerations. First, the company's development strategy; the second is the special nature of the pharmaceutical industry investment.

"The company phased strategic goal is to cover most of the prefecture-level cities, the layout of 200 eye hospitals in 2020. To this scale, the company believes its investment team alone is not enough, we passed with professional investment team, with their force search for the right eye investment targets. At the same time, they also raise social capital, which would also enlarge the investment of resources, "said Wu Shijun.

??? also said that with the actual situation of the medical industry, a lot of mergers and acquisitions are not the subject of a high degree of specification. "We buyout funds, you can make these the subject first specification, so that the development of these projects at a relatively high starting point in the future if the income of listed companies can achieve seamless integration