Beijing Tongrentang's (SHA:600085) subsidiary, Beijing Tongrentang Commercial Investment Group, agreed to terminate plans to acquire Honghui Pharmaceutical (Beijing), according to a Shanghai bourse filing on Wednesday.
As part of the agreement, Tongrentang Commercial will withdraw from Honghui Pharma through the latter's capital reduction, with the capital reduction consideration amounting to 104.6 million yuan.
Tongrentang will no longer need to pay the equity acquisition price because it is offset by the capital reduction consideration.