Shangai

Shanghai Pharmaceuticals Holding Co. (2607.HK) said it has agreed to set up a joint venture with a unit of private equity fund Primavera Capital Fund II L. P. for privatization of an Australia-listed healthcare company that is valued at 313 million Australian dollars ($237.5 million).
The Chinese pharmaceutical company said Thursday that it plans to set up a 60%-owned joint venture with Asia-based Primavera Capital Fund II L. P., which is founded by former Goldman Sachs executive Fred Hu, for a take-private deal of Vitaco Holdings Ltd. Primavera's unit PV Zeus Ltd. will own the remaining 40% in the joint venture company, it said.
Shanghai Pharmaceuticals said the offer price for Vitaco, which sells and makes a series of nutrition and healthcare products, is A$2.25 per share, representing 27.8% of Vitaco's last closing price on Wednesday. Vitaco, which was listed on the Australian Securities Exchange in September 2015, reported a net profit of A$9.6 million for the year ended March, 2015.
The deal would allow Shanghai Pharma to enter into healthcare products sector and benefit from its future growth, it said.