Gansu Longshenrongfa Pharmaceutical Industry Co.,Ltd (SZSE:300534) agreed to acquire 70% stake in Gansu Pu'an Pharmaceutical Co.,Ltd. from Gansu Province Farms Agribusiness Ref co Group Ltd. for approximately CNY 260 million on April 23, 2021. Under the terms, CNY 187.47 will be paid to Gansu Province Farms Agribusiness Refco Group Ltd and CNY 69.84 million to Gansu Pharmaceutical Investment Group Co., Ltd. The company will hold 95% equity of Gansu Pu'an Pharmaceutical after this transaction. The transaction still needs to be reviewed and approved by the Shenzhen Stock Exchange and registered by the China Securities Regulatory Commission and subject to approval from shareholders of Gansu Longshenrongfa Pharmaceutical Industry Co.,Ltd. The deal is approved by board of Gansu Longshenrongfa Pharmaceutical Industry Co.,Ltd. on May 11, 2021. As of September 7, 2022, Gansu Pharmaceutical Group held an interim meeting of the board of directors, where all directors unanimously agreed to transfer their 19% equity of Pu'an Pharmaceutical to Longshenrongfa. On September 14, 2022, Gansu Refco Group held an interim meeting of the board of directors, and considered the ?Proposal on Acquisition of 70% Equity Interest in Pu'an Pharmaceutical by Longshenrongfa through Cash Payment?, where all directors unanimously agreed to transfer their 51% stake in Pu'an Pharmaceutical to Longshenrongfa. On September 23, 2022, the listed company held the 16th meeting of the 4th board of directors, and reviewed and approved the ?Proposal on the Company's Eligibility for Cash Payment to Purchase Assets?. The transaction is still subject to the approval of Gansu Provincial State-Owned Asset Investment Group Co., Ltd., a state-funded enterprise. The transaction is still subject to the approval of the general meeting of shareholders of Longshenrongfa. Transaction is approved by Gansu Pharmaceutical Investment Group Co., Ltd. and Gansu Province Farms Agribusiness Refco Group Ltd board.

Dacheng Law Offices acted as legal advisor to Gansu Longshenrongfa Pharmaceutical. China Dragon Securities Co., Ltd. acted as financial advisor to Gansu Longshenrongfa Pharmaceutical. Da Hua Certified Public Accountants acted as Accountant to Gansu Longshenrongfa Pharmaceutical.


Gansu Longshenrongfa Pharmaceutical Industry Co.,Ltd (SZSE:300534) completed the acquisition of 70% stake in Gansu Pu'an Pharmaceutical Co.,Ltd. from Gansu Province Farms Agribusiness Ref co Group Ltd. on February 7, 2023.