Jia Yuan Law Offices has advised China Resources Pharmaceutical Group on its mixed-ownership reform plan valued at RMB6.2 billion (USD873.66 million).
Founding partner Yan Yu, senior partner Tan Sijun and Lv Dandan together led the Jia Yuan team.
Seven strategic investors came on board, providing a total capital increase of RMB5.26 billion coupled with additional capital of RMB1 billion from existing shareholders. This marks the largest single private equity financing project to date in the medical and pharmaceutical industry in the past three years.
The strategic investors are China Construction Bank, the Agricultural Bank of China, the Industrial and Commercial Bank of China, Bank of Communications, Bank of China, Beijing Guorui Zhongxin and the Beijing PICC Health Pension Fund.
CR Pharma specialises in marketing, logistics and supply chain solutions for pharmaceutical products. The company boasts renowned pharmaceutical brands, including CR Jiangzhong, CR Sanjiu and Dong-E-E-Jiao.
This transaction represents the inaugural public capital operation of CR Pharma in the equity financing market, resulting in the company’s registered capital increasing by RMB4.65 billion. Previously, the company’s registered capital stood at RMB15 billion. The company’s interim report last year posted a 10.5% year-on-year increase in total revenue in the first half of 2023 of RMB138.94 billion.
