Ann: AU$45.2M strategic equity placement to China Pioneer, page-13

It obviously pays to read the footnotes. Thanks. However having been forced to reread the announcement there is a few gems:

1.CP has a market cap of AUD415 million so the acquisition is roughly 10% of its market size - thats a big investment.

2. CP has a range of products :"China Pioneer has a portfolio of over 30 prescription pharmaceutical products and medicaldevices across ophthalmology, cardiovascular, orthopaedics, gynaecology, dental, gastrointestinaland osteoarthritis."  You have to decide whether any would be approved and have application for PGC. However some of PGC's principles may well let PGC sell to CP.

3. CP's "Products sold across mainland China into 30,000 hospitals and medical institutions and108,000 pharmacies". That is a much larger customer base but they must only have a very small market share. Revenue is only AUD 424 million but their net profit percentage is huge AUD 55 million.I must look at Hong Kong maybe the future controller of PGC is a cheaper entry point - lol

So all in all I think this is not just an investment there has to be a strategy here , however I cannot see how they could do a buyout without a lot of capital being raised. I suppose the Chinese government or linked bank may well be prepared to fund them...