The China Securities Regulatory Commission (CSRC) has approved a plan to combine China Meheco Corporation (SHSE: 600056) with Henan Topfond Pharmaceutical Co., Ltd. (SHSE: 600253).
After a year's of twists and turns, the two listed pharmaceutical companies that are under China General Technology (Group) Holding Ltd. (Genertec) will eventually be combined.
As shown from the announcement, the CSRC has approved China Meheco to issue 131 million shares to merge Topfond Pharmaceutical and to purchase assets by issuing 15 million shares to Genertec, Genertec Topfond Pharmaceutical Co., Ltd. and Genertec Pharmaceutical Holding, Ltd. China Meheco will also issue up to 48.87 million shares to finance capital to buy the aforementioned assets.
As subsidiaries of Genertec, China Meheco and Topfond Pharmaceutical have been competing with each other, but the reorganization will help eliminate the horizontal competition and expand the financing channels.