June 18 (NBD) -- Northeast Pharmaceutical Group Co Ltd (Northeast Pharmaceutical, 000597.SZ) made an announcement last Tuesday that its shareholder Liaoning Fangda Group Industrial Co., Ltd. (Fangda Group) bought about additional 16.08 million shares in the listed company through auction trading, becoming the largest shareholder of the pharmaceutical company.

It only took the raw material manufacturer 4 months to purchase a total of 21.02 percent stake in the Northeast Pharmaceutical. 

Fangda Group's new move is expected to fuel its expansion in the medical sector. The Group, which mainly provides carbon, iron & steel products and medical services, now owns 4 hospitals. 

It is noted that this is not the first time for Fangda Group to invest in the chemical pharmaceutical maker. In June 2012, Fangda Group made itself the third largest shareholder of Northeast Pharmaceutical through the acquisition of around 33.38 million shares in the latter. But two years later, the Group sold all of its stake in the pharmaceutical company in several deals and cashed out 314 million yuan (48.4 million U.S. dollars), reaping about 35 million yuan (5.4 million U.S. dollars) in profits.

Apart from the purchase of Northeast Pharmaceutical's stock, the raw material provider holds a 40.85 percent stake in graphite electrode and carbon producer FangDa Carbon New Material Co Ltd (600516.SH) and 44.38 percent in steel maker Fangda Special Steel Technology Co Ltd (600507.SH).

 

Email: zhanglingxiao@nbd.com.cn

Editor: Zhang Lingxiao