China Biopharma to buy Shenyang Enshi

China Biopharmaceuticals Holdings (CBH), a leading Chinese drugmaker focused on the development, manufacturing and distribution of innovative drugs for the domestic market has announced the signing of a conditional agreement to purchase all of the shares in RACP Pharmaceutical Holdings and its wholly-owned subsidiaries, including Shenyang Enshi Pharmaceutical, from RimAsia Capital Partners.

The aggregate amount of the acquisition-related consideration and other payouts is approximately $16.0 million, including $11.5 million in assumed liabilities of RACP, $550,000 cash payment and the assumption of RACP's existing obligations to issue 12 million warrant shares, which will result in an obligation for CBH to issue a like number of its common shares to the holders of the RACP warrants upon the future exercise of the RACP warrants at an exercise price of $1.375 each.

Commenting on the agreement, Chris Peng Mao, CBH's chief executive, stated: "the integration of Enshi, with reported 2005 revenues of approximately $11.0 million and net income of $5.1 million, into the CBH Group will not only further bolster our already robust production and distribution capabilities, but will enhance our operational and financial profile." He added: "seizing this step-change opportunity marks significant progress towards building CBH into the leading, fully-integrated pharmaceutical group in China."