London Asia buys China bio stake
London Asia, the Essex based investment and merchant banking group, has bought a controlling stake in China Biotech Healthcare Ltd for £647,000.London Asia, the Essex based investment and merchant banking group, has bought a controlling stake in China Biotech Healthcare Ltd for £647,000.
China Biotech is a Jersey incorporated holding company for Century Huanding Biomed-icine Technology, a profitable technology commercialisation company, which develops and distributes healthcare products in partnership with leading Chinese universities and research institutes.
London Asia will take a 51 per cent holding in China Biotech, which achieved pro forma profits for the year ended 30 June 2005 of £299k, a 69 per cent increase on the previous year. The investment is via the issue of 3,282,234 London Asia ordinary 5p shares at 18p a share, and the payment of US$100K (£57k) in cash.
Huanding’s core product is a unique, herbal derived bio-chromium supplement for long-term diabetes treatment. China is ranked second in the world in the incidence of diabetes and has an estimated 35 to 50 million people suffering from the disease.