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CR Capital Mulls Buying Control of Plasma Firm Boya

CR Capital Mulls Buying Control of Plasma Firm Boya

China Resources Capital Management Ltd. is considering acquiring a controlling stake in Shenzhen-listed Boya Bio-Pharmaceutical Group Co., according to people familiar with the matter.

The alternative investment arm of conglomerate China Resources Holdings Co. has held initial talks with Boya Bio’s major shareholder Shenzhen Gaotejia Investment Group, the people said. Gaotejia, which owns about 30% of Boya Bio, has also discussed with other potential suitors, said the people, who asked not to be identified as the information is private.

The talks come after the maker of blood plasma-driven treatments said in July that Gaotejia was planning a major event that could involve a change in shareholding. A 30% stake in Boya Bio is worth about 5.6 billion yuan ($818 million) based on the company’s share price on Friday.

Discussions are ongoing and China Resources Capital could still decide against an offer, the people said. Gaotejia could also opt to keep its stake, they added. Representatives for Boya Bio, China Resources Capital and Gaotejia didn’t immediately respond to requests for comment.

China is seeing surging demand for blood products, particularly for human serum albumin, a blood plasma derivative used to treat conditions including liver diseases. Set up in 1993, Boya Bio mainly engages in the production of blood products and also manufactures diabetes drugs, anti-infective chemicals and biochemical drugs, according to its website.

Boya Bio shares fell as much as 3.1% Monday, in line for their lowest price in two months. The recent slump has narrowed gains in an otherwise strong year, with the company’s stock up 34% to date in 2020, giving it a market value of $2.7 billion.

The firm reported net income of 426 million yuan in 2019, a drop of about 9% from the year before, according to its annual report.

Shenzhen-based Gaotejia is a private equity firm that focuses on investing in the health care industry, according to its website. It has about 20 billion yuan of assets under management and has invested in more than 130 companies.

©2020 Bloomberg L.P.

With assistance from Bloomberg