Plum Bio's $3.8 billion acquisition of Ipone Bio

Meihua Bio (600873) announced on the evening of November 14th that it intends to purchase 100% of Ningxia Yipin Biotech Co., Ltd("Ipin Bio") by issuing shares and paying cash, while raising no more than 1.041 billion yuan in matching fundsThe company's shares resumed trading on November 17YAG
The plan shows that the transaction target of the assets purchased by Meihua Bio is 9 shareholders of Yipin Bio, namely Ningxia Ipin Investment Group Co., Ltd("Ipin Group"), Foshan Mei's Investment Management Co., Ltd("Us Investment"), Beijing New Hope Industrial Investment Center ("New Hope"), Shanghai Honghui Investment Management Partnership ("Honghui Investment"), Shenzhen Tiansheng Hongyuan Equity Investment (Limited Investment) Partnership ("Tiansheng Hongyuan"), Ningxia Bailian Hui Investment Holdings Co., Ltd("Bailian Hui"), Shenzhen Shengsheng Jin Equity Investment Partnership ("Seishi Jin"), Beijing Long Shang Investment Asset Management Center ("Dragon Commercial Construction Investment") (referred to as "Dragon Commercial Construction Investment") (Hanfu-Yuan Investment Fund Partnership) ("Hanfu-Yuan")YAG
Prior to this transaction, there was no competition between the Company and the controlling shareholder and the actual controller or other enterprises under its controlAfter the completion of this transaction, the existing shareholders and natural persons of Ipin Bio will become shareholders of listed companies, except for MrYin Xiaoping through the Ipping Group and its concerted action MsTie Xiaorong total shareholding of more than 5%, the remaining new shareholders do not exceed 5% of the individual shareholding ratio, the company and the controlling shareholders and other enterprises under their control there is no inter-industry competitionAfter the completion of the transaction (before the completion of the supporting financing), Meng Qingshan and its co-action holders expect the shareholding ratio of 29.21%, still the actual controllerYAG
YAGbio 100% equity valuation estimate of 3.822 billion yuan, estimated value-added of 1,968 million yuan, value-added ratio of 106.15%The transaction price of the transaction, which was initially negotiated by the parties, was RMB3,822 millionPlum Bio intends to pay 700 million yuan in cash, and will pay 4.73 yuan per share to all shareholders of Ipsin Bio, with an expected issue of 660 million shares to pay the remaining considerationYAG
At the same time, Meihua Bio intends to raise supporting funds of no less than 4.86 yuan/share to no less than 4.86 yuan/share, raising a ceiling of 1.041 billion yuan, to pay the cash portion of the acquisition of all shares of Ipin Bio, and to use the construction and operation fund arrangement spent on the annual output of 200,000 tons of gastric acid feed additive spent in Inner Mongolia, a wholly owned subsidiary of Ipsin Bio, and its supporting projects to improve the integration of the transactionYAG
According to the performance commitments and forecast reports, from 2015 to 2017, The net profit realized by Ipsin Bio was RMB272 million, RMB301 million and RMB335 million, respectivelyIf the target company fails to achieve the performance of the aforementioned commitments, it will be compensated by The Ispin Group in cash, and Zhai Xiaoping shall bear joint and several liabilityYAG
At present, Plum Biology is a large-scale biofermentation-based industrial group, the main business covers amino acids and condiments two major areas, with food additives, pharmaceutical intermediates, feed additives, condiments and other four major industrial groupsYAGMeihua Bio (600873) announced on the evening of November 14th that it intends to purchase 100% of Ningxia Yipin Biotech Co., Ltd ("Ipin Bio") by issuing shares and paying cash, and raising no more than 1.041 billion yuan in matching funds The company's shares resumed trading on November 17 YAG
　　The plan shows that the transaction target of the assets purchased by Meihua Bio is 9 shareholders of Yipin Bio, namely Ningxia Ipin Investment Group Co., Ltd ("Ipin Group"), Foshan Mei's Investment Management Co., Ltd ("Us Investment"), Beijing New Hope Industrial Investment Center ("New Hope"), Shanghai Honghui Investment Management Partnership ("Honghui Investment"), Shenzhen Tiansheng Hongyuan Equity Investment (Limited Investment) Partnership ("Tiansheng Hongyuan"), Ningxia Bailian Hui Investment Holdings Co., Ltd ("Bailian Hui"), Shenzhen Shengsheng Jin Equity Investment Partnership ("Seishi Jin"), Beijing Long Shang Investment Asset Management Center ("Dragon Commercial Construction Investment") (referred to as "Dragon Commercial Construction Investment") (Hanfu-Yuan Investment Fund Partnership) ("Hanfu-Yuan") YAG
　　Prior to this transaction, there was no competition between the Company and the controlling shareholder and the actual controller or other enterprises under its control After the completion of this transaction, the existing shareholders and natural persons of Ipin Bio will become shareholders of listed companies, except for Mr Yin Xiaoping through the Ipping Group and its concerted action Ms Tie Xiaorong total shareholding of more than 5%, the remaining new shareholders do not exceed 5% of the individual shareholding ratio, the company and the controlling shareholders and other enterprises under their control there is no inter-industry competition After the completion of the transaction (before the completion of the supporting financing), Meng Qingshan and its co-action holders expect the shareholding ratio of 29.21%, still the actual controller YAG
YAG bio 100% equity valuation estimate of 3.822 billion yuan, estimated value-added of 1,968 million yuan, value-added ratio of 106.15% The transaction price of the transaction, which was initially negotiated by the parties, was RMB3,822 million Plum Bio intends to pay 700 million yuan in cash, and will pay 4.73 yuan per share to all shareholders of Ipsin Bio, with an expected issue of 660 million shares to pay the remaining consideration YAG
　　At the same time, Meihua Bio intends to raise supporting funds of no less than 4.86 yuan/share to no less than 4.86 yuan/share, raising a ceiling of 1.041 billion yuan, to pay the cash portion of the acquisition of all shares of Ipin Bio, and to use the construction and operation fund arrangement spent on the annual output of 200,000 tons of gastric acid feed additive spent in Inner Mongolia, a wholly owned subsidiary of Ipsin Bio, and its supporting projects to improve the integration of the transaction YAG
　　According to the performance commitments and forecast reports, from 2015 to 2017, The net profit realized by Ipsin Bio was RMB272 million, RMB301 million and RMB335 million, respectively If the target company fails to achieve the performance of the aforementioned commitments, it will be compensated by The Ispin Group in cash, and Zhai Xiaoping shall bear joint and several liability YAG
　　At present, Plum Biology is a large-scale biofermentation-based industrial group, the main business covers amino acids and condiments two major areas, with food additives, pharmaceutical intermediates, feed additives, condiments and other four major industrial groups YAG
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