Sep. 18, 2012 (China Knowledge) - Nanjing Pharmaceutical Co Ltd<600713
>, principally engaged in manufacturing and distribution of Chinese medicines and western drugs, has announced plans to raise RMB 1.06 billion via a private placement.
The company said it will issue 204 million A-shares at a price of RMB 5.2 to two companies, comprising its parent company, Nanjing Pharmaceutical Group Co, and Alliance Boots, a world famous pharmaceutical retailer and wholesaler.
Nanjing Pharmaceutical Group will subscribe 96.15 million shares or 47.17% with RMB 500 million, while Alliance Boots will subscribe 108 million shares with RMB 560 million.
After the deal, Nanjing Pharmaceutical Group will hold 26.94% stake in Nanjing Pharmaceutical Co, while Alliance Boots will hold a 12% stake in the company and become its second largest shareholder.
RMB 800 million of the proceeds from the issue will be used to repay bank loans, while the rest proceeds will be used to replenish working capital, said Nanjing Pharmaceutical Co.