DeHeng Advised Chongqing Medical & Health Industry Co., Ltd.
on Mixed Ownership Reform
2019-11-23
Recently, Chongqing Chemical & Pharmaceutical Holding (Group) Company has listed its 49% stake in Chongqing Medical & Health Industry Co., Ltd. on the Chongqing United Assets and Equity Exchange. The consortium composed of China Meheco Co., Ltd. (stock code: 600056) and its controlling shareholder, China General Technology(Group) Holding, Ltd., became the strategic investor of the mixed ownership reform. The transaction price was 4.1 billion yuan.
The deal was a significant move to further the implementation of the guiding principles of the 19th CPC National Congress and the Opinions of the State Council on the Development of a Mixed Ownership Economy by State-owned Enterprises (G. F. [2015] No.54). It is of great significance to accelerate the market expansion of the leading pharmaceutical enterprise in Chongqing, activate the internal market-oriented operation mechanism of the company, and promote the high-quality development of Chongqing Medical & Health Industry Co., Ltd.
Chongqing Medical & Health Industry Co., Ltd. was established in December 2018 by Chongqing Chemical & Pharmaceutical Holding (Group) Company in response to the decision by the Chongqing government and the Congqing Municipal State-owned Assets Supervision and Administration Commission to deepen the reform of state-owned enterprises, optimize the layout of state-owned assets and promote the high-quality growth of state-owned capital. At present, its core assets are concentrated in three areas: pharmaceutical business, pharmaceutical industry and healthcare. It is also a controlling shareholder of C.Q. Pharmaceutical Holding Co., Ltd. (stock code: 000950).
As the special legal counsel, the DeHeng team, led by lawyer Chen Xiaoping, partner of its Chongqing office, and with primary support from lawyers Chen Genhua, Li Keni and Bai Jing and paralegal He Shixian, advised Chongqing Chemical & Pharmaceutical Holding (Group) Company in multiple rounds of negotiation, consultation and review of transaction documents, and provided professional and efficient legal services in the whole process of this project.
