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May 24, 2013 /PRNewswire-FirstCall/ -- China Biologic Products, Inc. (Nasdaq: CBPO, "China Biologic" or the "Company"), a leading fully integrated plasma-based biopharmaceutical company in
China, today announced that the Company has recently learned from a public announcement issued by Shanghai RAAS Blood Products Co., Ltd. ("Shanghai RAAS"), a public company listed on Shenzhen Stock Exchange, that on
May 21, 2013, Ms.
Siu Ling Chan ("Ms. Chan"), one of the shareholders of the Company, and her spouse, Mr. Tung Lam, entered into a stock purchase agreement with Shanghai RAAS. According to the stock purchase agreement, Ms. Chan agreed to sell to Shanghai RAAS an aggregate of 2,657,660 shares of the Company's common stock, representing 9.9% of the Company's outstanding shares (the "Proposed Shanghai RAAS Transaction"). Pursuant to Shanghai RAAS corporate regulations and Chinese law, the transaction is subject to obtaining approval from Shanghai RAAS's shareholders and all necessary governmental authorities or agencies, as well as satisfying certain other closing conditions. Shanghai RAAS also stated in its announcement it has an intention to develop strategic business cooperation with the Company.
China Biologic would like to clarify that the Company had no knowledge of the Proposed Shanghai RAAS Transaction prior to the public announcement issued by Shanghai RAAS, nor has the Company had any communication or discussion with Shanghai RAAS regarding this transaction. The Company considers Shanghai RAAS as one of its direct competitors in
China and therefore does not view the Proposed Shanghai RAAS Transaction as a viable transaction. Given the competition between Shanghai RAAS and the Company and the differences between the two companies in terms of business strategies and technological capabilities, the Company currently has no intention to discuss or explore any business cooperation with Shanghai RAAS.
As disclosed in Shanghai RAAS' public announcement, it is apparent that Shanghai RAAS is aware of the fact that Ms. Chan's shareholding status with the Company is under dispute in a pending case in
Hong Kong. As previously disclosed by the Company on
March 12, 2013 on a Form 8-K filed with the United States Securities and Exchange Commission, the Company was notified, by a
Hong Kong solicitors firm representing a group of individuals, of a litigation (the "Hong Kong Litigation") filed in the High Court of
Hong Kong against Ms. Chan and her spouse, Mr. Tung Lam as well as certain other defendants. Based on information provided by the
Hong Kong solicitors firm, the Company understands that up to 5,178,962 shares of the Company's common stock held by Ms. Chan may be brought into question during the Hong Kong Litigation. Based on the Company's shareholder records, Ms. Chan is currently a registered shareholder of 5,362,624 shares of the Company's common stock.
China Biologic will closely monitor this case and further developments associated with the Proposed Shanghai RAAS Transaction and reserves the right to take any necessary and appropriate actions, including but not limited to implementing the shareholders rights plan to block the Proposed Shanghai RAAS Transaction.