Creat Said Planning to Sell U.K. Plasma Firm to Shanghai RAASBloomberg News
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