Zhongmu Co., Ltd. plans to acquire a 51% stake in Shengxue Dacheng for 727 million yuan and a 72.7272% stake in Inner Mongolia Shengxue Dacheng.

Beijing Business Daily (Reporter Wang Manlei): On the evening of March 3, Zhongmu Co., Ltd. (600195) announced that the company plans to acquire a 51% stake in Hebei Shengxue Dacheng Pharmaceutical Co., Ltd. (hereinafter referred to as “Shengxue Dacheng”) and a 72.7272% stake in Inner Mongolia Shengxue Dacheng Pharmaceutical Co., Ltd. (hereinafter referred to as “Inner Mongolia Shengxue Dacheng”) through open bidding using self-owned and raised funds. The total transaction price is 727 million yuan.

The announcement shows that after signing the transaction agreement, Zhongmu Co. will directly hold 51% of Shengxue Dacheng and 72.7272% of Inner Mongolia Shengxue Dacheng, and indirectly hold 13.9091% of Inner Mongolia Shengxue Dacheng through Shengxue Dacheng. The company will directly and indirectly hold a total of 86.6363% of Inner Mongolia Shengxue Dacheng. Shengxue Dacheng and Inner Mongolia Shengxue Dacheng will become controlling subsidiaries of the company, and their financial data will be included in the company’s consolidated financial statements. This transaction does not constitute an associated transaction or a major asset reorganization.

Zhongmu Co. stated that the company’s product lines are highly complementary to those of the target companies, with significant synergy effects. After the completion of this transaction, both parties’ products will form a product matrix, enhancing customer stickiness and market share. Additionally, the R&D teams of both sides can share technology and resources, accelerating new product development and further highlighting the advantages of product synergy.