Tongjitang to sell asset management unit for $39 mln
Shanghai. September 29. INTERFAX-CHINA - New York Stock Exchange-listed Tongjitang Chinese Medicines Co. on Sept. 28 announced plans to sell its asset management subsidiary, Guizhou Tongjitang Asset Management Co. Ltd., to Guizhou Huixian Investment Management Co. Ltd.
According to the announcement, the two sides have entered into a share transfer agreement under which Huixian Investment will fully acquire Tongjitang Asset Management for a total cash consideration of RMB 259.3 million ($38.77 million).
Tongjitang Asset Management is sole owner of Guizhou Tongjitang Pharmaceutical Distribution Co. Ltd. and Guizhou Tongjitang Pharmacy Chain Stores Co. Ltd., and holds a 95 percent stake in Gui Liquor Co. Ltd, the announcement said.
"Following the transaction, Tongjitang will be better equipped to focus on its core business of developing, manufacturing and marketing modernized traditional Chinese medicines (TCM)," Xiaochun Wang, the company's chairman and chief executive officer (CEO), said in the announcement.
Guizhou Province-based Tongjitang reported operating losses of RMB 12.5 million ($1.87 million) in the first half of 2010.