Chinese Billionare Chen Fashu to Chair Medicine Conglomerate Baiyao Holdings
Liao Shumin
DATE:  Jul 24 2018
/ SOURCE:  Yicai
Chinese Billionare Chen Fashu to Chair Medicine Conglomerate Baiyao Holdings Chinese Billionare Chen Fashu to Chair Medicine Conglomerate Baiyao Holdings

(Yicai Global) July 24 -- Chen Fashu, the richest man in China's Fuzhou province, has been elected as chairman of Yunnan Baiyao Holdings, a company he spent seven years trying to get his hands on.

Former chairman and legal representative Wang Jianhua has stepped down for personal reasons and Chen will take up both roles, Beijing News reported. Baiyao's listed unit, Yunnan Baiyao Group, has not issued a statement covering the change yet.

Chen, who founded Chinese conglomerate New Huadu Industrial Group and is worth CNY35 billion (USD5 billion), sought to buy a 12 percent stake in Baiyao Holdings in September 2009 for CNY2.2 billion. Though he and the seller, Hongta Tobacco Group, agreed to terms -- the regulator shut the transaction down.

Chen filed a series of lawsuits to fight the case, but was unable to get his hands on Baiyao shares until it conducted a mixed-ownership reform in 2016. Newhuadu Industrial managed to claim a 50 percent stake in the firm for CNY25.4 billion, sharing it with Yunnan's provincial State-owned Assets Supervision and Administration Commission.

That was diluted shortly after in June 2017, when the Baiyao Group announced that its largest shareholder Jiangsu Yuyue Medical Equipment and Supply would inject CNY5.6 billion into Baiyao Holdings, giving it a 10 percent stake and diluting the existing stakeholders' to 45 percent each.

Editor: James Boynton

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Keywords:   Newhuadu Industrial Group,Chen Fashu,Baiyao Group