The company, RIBOLIFE-B (ASX: 06938), has announced the signing of a share transfer agreement with Haihe Cathay Fund. Under this agreement, the company will acquire a 25.93% equity interest in its subsidiary, Xingborun, for a total consideration of RMB 70 million.
This transaction follows the exercise of a redemption right granted to Haihe Cathay Fund under a prior capital increase agreement. The purchase price was determined through fair negotiation between the parties and in accordance with the redemption price mechanism specified in that agreement.
Based on the valuation from Xingborun's most recent equity financing round, the 25.93% stake is valued at approximately RMB 74.82 million, which is higher than the agreed purchase price.
RIBOLIFE-B is a clinical-stage biopharmaceutical company focused on the research and development of small nucleic acid therapies, primarily siRNA drugs. Xingborun, its direct non-wholly owned subsidiary, is a key upstream production and industrialisation platform for the group, primarily engaged in the manufacture of phosphoramidite and nucleoside products.
Xingborun has commenced batch production and commercial sales, with its business continuing to develop. Upon completion of this acquisition, the company's ownership in Xingborun will increase from approximately 62.24% to about 88.17%.
This move will strengthen the company's control over Xingborun and entitle it to a larger share of the economic benefits and future returns generated by the subsidiary.
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