Business Expansion Shanghai Pharma to Acquire 100 % Stake in Cardinal Health China
The company has entered into a Stock Purchase Agreement with a wholly owned subsidiary of Cardinal Health. The base payment for the transaction is 1.2 billion dollars.
Shanghai/Hong Kong – Shanghai Pharmaceuticals Holding Co., a leading pharmaceutical manufacturer and healthcare services provider in China, recently announced that its wholly-owned subsidiary Shanghai Pharma Century Global (Century Global) has entered into a Stock Purchase Agreement with a wholly owned subsidiary of Cardinal Health.
Shanghai Pharma will acquire a 100 % stake in Cardinal Health Co., in an all-cash offer. The base payment for the transaction is 1.2 billion dollars, from which shareholder loans and certain other debts netting off cash in hand will be deducted and a difference between the closing date working capital and a working capital target will be added or deducted upon deal completion in accordance with the Stock Purchase Agreement. The company estimates the final payment will be approximately 557 million dollars. Shanghai Pharma will own Cardinal Health’s business entities in the PRC (Cardinal Health China) upon the completion of this transaction.
Shanghai Pharma and Cardinal Health are also entering into a strategic partnership to collaborate on exploring global business opportunities by leveraging their respective strengths. This includes developing new business models for the industry to address rapidly changing patient and consumer needs.