China Resources Appointed to Bail out 999 Group

The State-owned Assets Supervision and Administration Commission (SASAC) has selected China Resources Enterprise (CRE) to act as a strategic investor for the troubled state-owned pharmaceutical company 999 Group.

Sources with the SASAC said on Monday that it had picked CRE to rescue the debt-laden drug maker in order to protect the interests of the group's minority share-holders and ensure the healthy development of the company.

The Shenzhen-based drug company is engaged in a wide range of business, including pharmaceutical production and packaging, medicine sales and the provision of medical services.

The group, however, slipped into a grave credit crisis in 2003 and the SASAC approved the financial restructuring of the company in 2004.

The SASAC picked CRE from five conglomerates that applied to be strategic investors at the end of 2006, including Deutsche Bank and the Fosun Group.

(Xinhua News Agency March 20, 2007)