Acquires 100% of Hutchison He

RNS Number : 3220B

Hutchison China Meditech Limited

26 October 2009

 



Hutchison China MediTech Limited ("Chi-Med")

(AIM: HCM)

Chi-Med increases ownership of its Hutchison Healthcare joint venture to 100% 

London: Monday, 26 October 2009: Chi-Med, the majority owned subsidiary of Hutchison Whampoa Limited ("Hutchison Whampoa"), today announces the intended increase in its ownership of Hutchison Healthcare Limited ("HHL"), one of the three joint ventures which comprise Chi-Med's China Healthcare Division, from approximately 85% to 100%. 

Chi-Med's China Healthcare Division manufactures, distributes and markets pharmaceuticals and health supplements in the fast growing China healthcare market. Since flotation in 2006, it has recorded compound annual organic growth of 28% and for the first 6 months of 2009, grew sales 23% to US$53.1 million and grew net profit after tax and minority interests 35% to US$6.6 million.

HHL produces health food products, including the rapidly growing Zhi Ling Tong infant nutrition brand. Chi-Med's wholly-owned subsidiary, Pioneer Leader Limited, has conditionally acquired the outstanding minority equity interest in HHL of approximately 15% at a total consideration, including the share transfer price and current account payments, of RMB 4.2 million (approximately US$0.6 million). The current account payments have been made by HHL.  It is expected that the conditions precedents to completion of the acquisition, which are primarily procedural, will be fulfilled before the end of 2009.

HHL's performance has improved significantly in this year due primarily to the strong growth in the Zhi Ling Tong range. Net profit for HHL reached RMB 2.1 million (approximately US$0.3 million) in the first half of 2009 compared to a loss of RMB 0.2 million in the same period 2008. 

Mr. Christian Hogg, CEO of Chi-Med, said: "The increase in our share in HHL to 100% is an important step for Chi-Med. Furthermore, gaining total control of the Zhi Ling Tong brand is important in light of our recently announced joint venture with The Hain Celestial Group, Inc. and our plans to co-brand Zhi Ling Tong[R] and Earth's Best[R] organic infant nutrition products for launch in the China market."

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Enquiries

Chi-Med    Christian Hogg, CEO	Telephone: [phone]
Citigate Dewe Rogerson    Anthony Carlisle    David Dible	Telephone: [phone] [phone] [phone]

About Chi-Med

Chi-Med is the holding company of a pharmaceutical and healthcare group based primarily in China  and was admitted to trading on the Alternative Investment Market of the London Stock Exchange in May 2006. It is focused on researching, developing, manufacturing, and selling pharmaceuticals, health supplements and other consumer health and personal care products derived from Traditional Chinese Medicine and botanical ingredients.

Chi-Med is majority owned by Hutchison Whampoa Limited, an international company listed on the Main Board of The Stock Exchange of Hong Kong Limited.

 

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