Oct. 16, 2009 (China Knowledge) - Shanghai Industrial Holdings Ltd<0363>, a Hong Kong-listed conglomerate engaged in real estate, infrastructure, medicine and consumer products businesses, announced on Thursday that it has sold its 43.62% stake in SI Pharmaceutical to Shanghai Pharmaceutical of the Shanghai Industrial Group for HK$3.48 billion as part of its asset restructuring plan.

The Shanghai-based company also sold its entire equity interest in other pharmaceutical companies including Chia Tai Qingchunbao Pharmaceutical, Huqingyutang Pharmaceutical, Xiamen TCM, Liaoning Herbapex and Sunway Biotech to the fellow subsidiary.

The total considerations amounted to HK$5.75 billion, and SIHL is expected to book a one-time gain of HK$3 billion from the deals.

After the divestment, SIHL will gear up for aggressive mergers and acquisitions in the real estate and infrastructure businesses, said chairman Teng Yilong, adding that the company has invested approximately HK$2.27 billion in the Shanghai Bay residential project and HK$1.73 billion in Qingpu land reserves.

Earlier this year, SIHL sold another medicine asset – its 18.89% interest in MicroPort Medical – for HK$516 million to a unit of Shanghai Zhangjiang Hi-Tech Park.