China Cinda Subsidiaries to Inject 285 Million Yuan into Luye Pharma Unit

MT Newswires Live
01/27

Two China Cinda Asset Management (HKG:1359) subsidiaries will inject 285 million yuan into Luye Pharma's (HKG:2186) oncology unit, Nanjing Luye Pharmaceutical, according to a Tuesday Hong Kong bourse filing.

Nanjing Xian'an Investment will contribute 185 million yuan, and Ningbo Xinda Huajian Investment will inject 100 million yuan.

The transaction includes equity option arrangements under which the group's unit, Yantai Luye, holds call options over the Cinda entities' stakes, while Nanjing Xinan and Ningbo Cinda hold put options tied to listing, performance, and control-related trigger events.

The company will also provide a guarantee for Yantai Luye's obligations under the option agreements.

Proceeds from the capital injection will be used to repay existing financial indebtedness and operating liabilities, the filing said.

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