CITIC PE Exits 10.26% Stake In Beijing Jialin Pharmaceutical

CITIC Private Equity is to exit from Beijing Jialin Pharmaceutical Co., Ltd. through a trade sale. It will sell its 10.26% stake to Yantai, Shandong province-based Chinese drug-maker Luye Pharma Group for RMB589 million (US$95.88 million), according to an announcement made by Luye.

Luye will invest a total of RMB3.68 billion (US$600 million) to take a combined 57.98% shareholding in Beijing Jialin, whose major shareholder Chinese conglomerate Mylin Holdings would sell its entire stake of 47.72% to Luye for RMB3.09 billion.

Luye intends to use HK$2.15 billion (US$350 million), or approximately 60% of the net proceeds it received from its initial public offering last month to fund part of the deal.

Luye, backed by CDH Investments, CITIC Private Equity and New Horizon Capital, completed a Hong Kong IPO in July, raising a total of US$764 million.

The investment will allow the two companies to further enhance its sales and marketing coverage and synergies, and take advantages of the multiple channels offered by the combined network, according to the statement.

Beijing Jialin develops and manufactures drugs for cardiovascular diseases.

Luye has a nationwide sales and distribution network comprising more than 50 sales offices, with sales covering over 8,000 hospitals across 30 provinces, municipalities and autonomous regions in China.