Creat Said Planning to Sell U.K. Plasma Firm to Shanghai RAAS

  • Biggest China healthcare company would gain overseas footprint
  • Creat acquired BPL earlier this year for 820 million pounds

China’s Creat Group Corp. plans to sell a British maker of blood plasma therapies to publicly-traded affiliate Shanghai RAAS Blood Products Co., according to people familiar with the matter.

Creat plans to inject U.K.-based Bio Products Laboratory Ltd. into Shanghai RAAS partly to avoid competition between the companies, the people said, asking not to be identified as the information is private. Privately-held Creat agreed in May to buy BPL, which specializes in treatments made from blood plasma, for 820 million pounds ($1.1 billion). 

Shanghai RAAS is China’s biggest health-care company by valuation with a market capitalization of about $17 billion, data compiled by Bloomberg show. Creat and Shanghai RAAS haven’t set a time frame for the injection, and details of the transaction still need to be finalized, according to the people.

Gaining control of BPL would give Shanghai RAAS a business that exports to more than 45 countries and supplies plasma from the U.S. to other plasma therapy manufacturers. The Chinese company is the nation’s largest seller of plasma-based therapies, or medicines made from blood components that are used during surgeries or for disorders like hemophilia.

Closely-held companies in China often sell businesses to their listed arms in a process known as asset injection. The listed company frequently pays for such acquisitions by issuing stock, giving them a way to diversify their operations and potentially boost profits without fronting cash, while the parent gets increased control of the publicly-traded unit in return.

The completion of Creat’s acquisition of BPL was announced in August. Creat through its affiliated companies is one of the two major shareholders of Shanghai RAAS.

A representative for Shanghai RAAS said he couldn’t immediately comment. Creat Group didn’t respond to an e-mail seeking comment, and representatives for the company couldn’t immediately be reached.

— With assistance by Hui Li, and Steven Yang

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