LONDON, June 09, 2020 (GLOBE NEWSWIRE) — Hutchison China MediTech Limited (“Chi-Med”) (Nasdaq/AIM: HCM) today announces that Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited (“HBYS”), its 50:50 joint venture with Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited, has today entered into an agreement (the “Agreement”) with the Guangzhou government for the planned return of HBYS’s remaining 34 years land-use rights on its approximately 30,000 square meters unused site (“HBYS Plot 2”) at Guang Cong Road, Tong He Town, Baiyun District, Guangzhou (the “Site”).
The Site is located in an area of Guangzhou approximately six kilometers from the city center, which will be rezoned from industrial use to commercial and residential usage. The Agreement signed between HBYS and the Land Development Centre of Guangzhou provides that HBYS will return the Site to the government in consideration for cash compensation of up to US$95 million (the “Compensation”). Under the Agreement, HBYS will receive the Compensation in several stages over a period of approximately one year as all surrender procedures are met and the transaction progresses to completion.The return of HBYS Plot 2 has no impact on the operations of HBYS. The joint venture continues to operate manufacturing facilities at a second, 59,000 square meter, nearby site in Baiyun District, Guangzhou (HBYS Plot 1) as well as a large new factory, on a 230,000 square meter site, in Bozhou, Anhui Province.About Chi-Med
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