CHINA Resources Capital Management Ltd. is considering acquiring a controlling stake in Shenzhen-listed Boya Bio-Pharmaceutical Group Co., according to people familiar with the matter.

The alternative investment arm of conglomerate China Resources Holdings Co. has held initial talks with Boya Bio’s major shareholder Shenzhen Gaotejia Investment Group, the people said.

Gaotejia, which owns about 30 percent of Boya Bio, has also discussed with other potential suitors, said the people.

The talks come after the maker of blood plasma-driven treatments said in July that Gaotejia was planning a major event that could involve a change in shareholding. A 30 percent stake in Boya Bio is worth about 5.6 billion yuan (US$818 million) based on the company’s share price Friday.

Discussions are ongoing and China Resources Capital could still decide against an offer, the people said. Gaotejia could also opt to keep its stake, they added. Representatives for Boya Bio, China Resources Capital and Gaotejia didn’t immediately respond to requests for comment yesterday.

China is seeing surging demand for blood products, particularly for human serum albumin, a blood plasma derivative used to treat conditions including liver diseases.

Set up in 1993, Boya Bio mainly engages in the production of blood products and also manufactures diabetes drugs, anti-infective chemicals and biochemical drugs, according to its website.

Boya Bio shares fell 4.52 percent yesterday, in line for their lowest price in two months. The recent slump has narrowed gains in an otherwise strong year, with the company’s stock up more than 30 percent to date in 2020, giving it a market value of US$2.7 billion. (SD-Agencies)