Dacheng Advises Sanchine Pharmaceutical Holding Co., Ltd. on Major Assets Restructuring

On March 12, 2015, the major assets replacement plan between Harbin Pharm Group Sanchine Pharmaceutical Holding Co., Ltd. (“Sanchine”, stock code: 600829) and Harbin Pharmaceutical Group Holding Co., Ltd. (“Harbin Pharmaceutical Group”, stock code: 600644) was approved on both parties’ stockholders’ meetings. According to the plan, all pharmaceutical industry assets and liabilities held by Sanchine would be exchanged for a 98.5% stake in Harbin Pharmaceutical Group Holding Co., Ltd. originally held by its parent company—Harbin Pharmaceutical Group Co., Ltd..

The major asset restructuring between Harbin Pharmaceutical Group and Sanchine, the parent company and the subsidiary both listed on the Shanghai Stock Exchange, represents a strategic re-planning and an industrial layout adjustment in order to solve the problem of horizontal competition. 

A Dacheng team composed of Beijing-based senior partners Xu Huijie and Zhang Run, partner Wei Jianfeng, and associates Leng Zhuoyan, Zhang Yanting, Gao Shuai and Jian Zhihong advised Sanchine on the deal. The attorneys delivered quality, efficient and comprehensive services for the client, including devising the restructuring plan, conducting due diligence, drafting legal documents and executing subsequent restructuring. Their performance won recognition and commendation from the client. 

Guotai Junan Securities Co., Ltd. acted as independent financial advisor for the deal, Beijing Xinghua Certified Public Accountants LLP and Grant Thornton China LLP as auditor, Beijing Guorongxinghua Assets Appraisal Co., Ltd. and Liaoning Zhonghua Assets Appraisal Co., Ltd. as asset appraisal agencies.