December 29 -- Harbin Pharmaceutical (600664.SH) won approval from the China Securities Regulatory Commission to issue 303 million shares at 18.10 yuan per share to controlling shareholder, Harbin Pharmaceutical Group, in order to buy 5.48 billion yuan worth of assets, reports Shanghai Securities News, citing a company filing.

Following the transaction, Harbin Pharma will fully acquire a bio-engineering company owned by Harbin Pharmaceutical Group and its shareholding in Sanjing Pharmaceutical (600289) will be raised from 30 percent to 74.82 percent.

After deducting non-recurring profits and losses, Sanjing Pharma recorded diluted return on net assets of 17.48 percent in 2009, and 18.65 percent in 2010.

The corresponding figures of the bio-engineering company were 51.38 percent and 33.48 percent.

According to Harbin Pharma, the research, procurement, and sales functions of Sanjing Pharma will still be independently operated.

Harbin Pharma said the acquisition will allow it to save on procurement costs, and will not harm the interests of Sanjing Pharma.

According to the company, it will become the core pharmaceutical platform of Harbin Pharmaceutical Group, and will develop into a leading integrated pharmaceutical company in China, with operations across the whole industry chain. It will have a leadership position in the antibiotics and OTC drugs sectors.

Shares of Harbin Pharma rose 3.1 percent to trade at 7.31 yuan per share at 11:12 today.