GUSHENGTANG Shares Climb Over 4% on Plans to Acquire Majority Stakes in Three Medical Institutions

Stock News03-04 10:11

GUSHENGTANG (02273) rose more than 4%, with the stock up 3.13% to HK$26.36 at the time of writing. Turnover reached HK$20.217 million. On March 3, the company announced that its subsidiary, Shandong GUSHENGTANG Health Technology Co., Ltd., intends to acquire a 70% equity interest in Jinan New Sunshine, a 70% stake in Jinan Yunshengtang, and a 70% share in Jinan Licheng Yunshengtang. The target companies are medical institutions primarily engaged in providing traditional Chinese medicine services and pharmaceutical retail services in Shandong Province, China. The acquisitions align with the group's expansion strategy of enlarging its offline medical institution network through acquisitions. The company believes the transactions will increase its market share in Shandong and create synergies between the target companies and its other offline medical facilities and online healthcare platform.

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