Silver Base Group Holdings Limited (“Silver Base” or the “Group”, stock code: 886) is pleased to announce that on 23 July 2012, the Group entered into aframework agreement with Guangzhou Baiyunshan Pan Gao Shou Pharmaceutical Co., Ltd. (“Guangzhou Pan Gao Shou”).
Under the framework agreement, it is proposed that Silver Base Healthcare Products Investment Company Limited (an indirect wholly-owned subsidiary of Silver Base) will acquire 50% equity interests in Pan Gao Shou Food Beverage Company Limited (“Pan Gao Shou Food Beverage”), a wholly owned subsidiary of Guangzhou Pan Gao Shou, for a total consideration of RMB4,900,000 if the acquisition materialises. Upon completion of the acquisition, Silver Base and Guangzhou Pan Gao Shou will hold the same percentage of the equity interests of Pan Gao Shou Food Beverage. It is also proposed that Pan Gao Shou Food Beverage will appoint Silver Base Trading and Development (Shenzhen) Co. Limited (an indirect wholly-owned subsidiary of Silver Base) as an exclusive distributor to sell its products including herbal tea, turtle jelly, loquat beverage and throat lozenge products under the “Pan Gao Shou” brand.
Mr. Liang Guoxing, Chairman of Silver Base Group said, “The Group obtained distribution rights for numerous high-end baijiu brands, such as Wuliangye, and has well-established distribution channels in the PRC. As “Pan Gao Shou” is a national brand in the PRC with a history of over a hundred years, we believe that, the proposed acquisition of Pan Gao Shou Food Beverage will be a good opportunity for the Group to broaden its business to herbal tea and health food segments and maximise the return of the shareholders”
For details of the framework agreement, please refer to announcements dated 23 July 2012.