Luye buys majority stake in Beijing Jialin

Luye Pharma Group Ltd. (HKSE:2186) will acquire a 58% stake in Beijing Jialin Pharmaceutical Co. Ltd. from Beijing Jialin shareholders Mylin Holding Group Co. Ltd. (Beijing, China) and Beijing CITIC in a tranched RMB3.7 billion ($599 million) cash deal. Mylin will ask the other Beijing Jialin shareholders to sell Luye their remaining 42% interest.

Beijing Jialin develops and markets pharmaceuticals in China for cardiovascular diseases and cancer. The company had 2013 revenues of RMB1.1 billion ($185 million). Luye said the deal will supplement its existing cardiovascular product portfolio and sales and marketing coverage. Luye will hold a special general meeting to seek shareholder approval. ...