According to June 9th, 2020 public notice, Kangyue Technology Co, Ltd intended to acquire, through cash payments, no less than 51% of the shares held by Changjiang Pharmaceutical Group.
Shengshi Fenghua, a Special Purpose Vehicle that was established by Sensegain Asset Management for acquisition purpose, has become the controlling shareholder of the Kangyue from earlier this year. Sensegain is planning and working on building an integrated healthcare platform through M&A, reformation, and injecting quality assets into Kangyue Technology.
As scheduled, Kangyue is acquiring one of the Sensegain’s portfolio companies, Changjiang Pharmaceutical Group, whose main areas of operations including manufacturer of hygienic materials and medical supplies. The pharma company has constructed the industrial chain layout for innovative medical capsule production, pharmaceutical logistics network, Chinese patent medicines, herbal medicines and Chinese medicine raw materials production. Changjiang Pharma has strong financial performance with estimated 2020 annual consolidate income of ￥200Mn RMB, since Covid-19 pandemic boosting the company’s annual revenue.
This transaction is still in its preliminary planning stage, and the transaction plan needs to undergo further discussions and negotiations.
Please contact us if you are interested in more information on this transaction and possible investment opportunities.