TAIAN CITY, China, April 17 /PRNewswire-Asia-FirstCall/ -- China Biologic Products, Inc. (OTC Bulletin Board: CBPO) ("China Biologic" or the "Company"), one of the leading plasma-based biopharmaceutical companies in the People's Republic of China ("PRC"), announced that it has completed the third installment payment towards the acquisition of a 90% equity interest in Chongqing Dalin Biologic Technologies Co., Ltd. ("Dalin") for a total consideration of RMB 194,400,000 (approximately $28.5 million), in accordance with the terms of an equity transfer agreement with the Dalin shareholders, and is now entitled to all the rights and privileges of a 90% shareholder in Dalin and in Dalin's 54% majority-owned operating subsidiary, Qianfeng Biological Products Co., Ltd. ("Qianfeng"), one of the largest plasma-based biopharmaceutical companies in China, located in Guiyang, Guizhou Province.
This installment represents the Company's payment of an aggregate 90% of the total purchase price, and according to the equity transfer agreement, as amended, Logic Holding (Hong Kong) Limited ("Logic Holding"), the Company's wholly-owned subsidiary, is now entitled to all the rights and privileges of a 90% shareholder in Dalin, including the right to receive its pro rata share of 54% of the profits generated by Qianfeng, as of January 1, 2009, subject to a possible dilution to as low as 41.3%, if a dissenting Qianfeng shareholder prevails in a pre-existing suit to obtain additional equity interests in Qianfeng.
On March 26, 2009, Dalin received a certificate of approval from the
municipal government in Chongqing for the establishment of a Taiwan, Hong Kong,
Macao and Overseas Chinese invested enterprise in China, which allows Dalin to
operate as a Sino-foreign joint venture; and on April 10, 2009, Dalin, as a
Sino-foreign joint venture, received business licenses from the Chongqing City
Administration for Industry and Commerce
|SOURCE China Biologic Products, Inc.|
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