3rd Sep 2013 13:12
LONDON (Alliance News) - Cathay International Holdings Limited Tuesday moved on its promise to develop synergies between its portfolio companies as Yangling Haotian and Xian Haotian signed a deal to supply plant extract products to Liwah Zhiti.
Cathay is an investment holding company that invests in the growing healthcare sector in China.
Liwah Zhiti is an indirect subsidiary via Cathay portfolio company Lansen Group, while Haotian and Xian Haotian are indirect subsidiaries the Haotian Group.
"The agreement leverages key synergies between Haotian's and Lansen's plant extract business in manufacturing, R&D and marketing," Cathay said in a statement.
It said that under the terms of the agreement, Yangling Haotian and Xian Haotian will supply plant extract products on an order by order basis to Liwah Zhiti, and the maximum value of the transactions will be about USD9.2 million.
The selling price per unit will be determined by reference to the prevailing market prices for the products and the agreement is valid until December 2014, Cathay added.
Cathay International Holdings shares were trading 0.8% higher Tuesday at 29.99 pence a share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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