Extrawell Pharmaceutical Holdings plans to spend HK$55 million for subsidiary Best-Bio to buy an effective 27.22 per cent in a biotechnology company owned by two of its directors.
Yesterday, the mainland health-care company said it would buy 55 per cent of investment holding company Gene Generation, which has a 49.5 per cent interest in Shanghai Biostar - manufacturer and distributor of genechips.
Chairman Mao Yu Min and director Xie Yi are selling the Gene Generation stake to Extrawell via United Gene, owned 33.5 per cent by Mr Mao and 38.5 per cent by Mr Xie.
They will receive Extrawell promissory notes, bearing an annual 1 per cent interest rate, for majority control of Gene Generation, which last year had unaudited net assets of HK$400,000.
The deal is subject to shareholder approval at a special general meeting.
Last year, Shanghai Biostar reported an unaudited net profit after tax of 32.8 million yuan (about HK$30.73 million), under the China accounting standard.
