Dec 1, 2010
Press Release

Sumitomo Corp acquires 29% strategic stake in C&O Pharmaceutical for S$96 million

Mainboard-listed C & O Pharmaceutical Technology (Holdings) Limited (“C&O” or “the Group”) today announced that Sumitomo Corporation (“Sumitomo”), has entered into a sale and purchase agreement with Leo Star Development Limited, an investment holding company helmed by C&O’s Executive Chairman Mr Gao Bin, for a 29% stake in C&O for a consideration of S$96,187,000 or S$0.50 per share.

Sumitomo Corporation is one of the world’s largest integrated trading companies engaged in multifaceted business activities around the world with more than 25 domestic offices in Japan and 115 overseas offices spanning over 65 countries. In the financial year ended 31 March 2010, Sumitomo’s revenue totalled JPY2,884.2 billion (USD 31,013 million) and net income attributable to shareholders amounted to JPY155.2 billion (USD 1,669 million)1. Its strategic investment in C&O signifies a vote of confidence in C&O’s integrated competencies and business prospects.

Upon completion of the acquisition, Leo Star and Mr. Gao together will own approximately 29.17% in C&O while Sumitomo will be the Group’s second largest substantial shareholder with 29% interest. Committed to be actively involved in steering C&O’s growth both domestically and internationally, Sumitomo will nominate three executive directors to sit on C&O’s Board, who will replace three existing directors of C&O, and one of whom will be designated as Chairman of the Board while Mr Gao will be redesignated as the Group’s Vice Chairman, and will continue to service the Group.

Said Mr Gao, “Today, I am delighted to welcome Sumitomo to be our substantial shareholder. Our partnership with Sumitomo symbolises a new era for C&O. Undoubtedly, Sumitomo’s expertise in corporate management, global network and experience in developing international markets will further strengthen C&O’s core competiveness, and help to expand our business in the China healthcare market, as well as explore export markets in Southeast Asia.”

“Coupled with our extensive distribution network and marketing experience in China, C&O will become a leading player in the China market, with an aim to deliver more quality products to consumers. I look forward to working closely with the Sumitomo team to achieve this goal.” Mr Gao concluded.