(Yicai Global) Oct. 31 – Zhejiang-based Tech-bank Food Co. [SHE:002124] plans to purchase 20.4 percent equity in China Animal Healthcare Ltd. [HK:0940] owned by Eli Lilly and Company [NYSE:LLY] in the US to expand its business in animal vaccine products.
Tech-bank entered into a trade agreement with the wholly-owned subsidiary of Eli Lilly and Co, a pharmaceuticals giant in the US, today. Tech-bank will pay CNY200 million (USD30.1 million) of its funds for a 20 percent stake in the company to become its second largest shareholder, a statement released by the Tech-bank said.
The largest shareholder of China Animal Healthcare Ltd. is Wang Family Company Ltd, which holds 25.88 percent of equities, followed by the subsidiary of Eli Lilly and Co with 20.4 percent of equities, shows public information before the transaction.
China Animal Healthcare Ltd. was founded in 2007, whose main products are animal vaccines against diseases such as foot-and-mouth disease, porcine reproductive and respiratory syndrome virus (PRRSV), and swine fever. Its products won the bids for major animal vaccines in 26 provinces in the spring of 2016.
After the transaction, Tech-bank will become one of the few enterprises specializing in compulsory immunization vaccine against foot-and-mouth disease, thus enriching its stockpile of vaccine products for pigs and poultry and expanding its share in the vaccines market.