AB. Alliance Boots

RNS Number:3168U
Alliance Boots plc
03 April 2007

Alliance Boots plc

3 April 2007



Update on Chinese joint venture



Alliance Boots plc, a leading pharmacy-led health and beauty group, advises that
further to the announcement on 29 January 2007 that it has reached an agreement
to form a 50:50 joint venture in Guangzhou Pharmaceuticals Corporation ("GP
Corp"), the third largest pharmaceutical wholesaler in China, the shareholders
of Guangzhou Pharmaceutical Company Ltd have voted at an Extraordinary General
Meeting held in Guangzhou on 2 April 2007 to approve the formation of the joint
venture.



Alliance Boots' partner in the joint venture, Guangzhou Pharmaceutical Company
Ltd, is a majority state-owned pharmaceutical enterprise which is listed on the
Hong Kong and Shanghai stock exchanges.  Guangzhou Pharmaceutical Company Ltd
currently owns 90% of GP Corp.



The investment in GP Corp will be made through a UK subsidiary in which Beijing
Med-Pharm Corporation ("BMP") holds a 20% stake. BMP is a US-listed
pharmaceutical marketing and distribution company with existing operations and
significant experience in China.  The subsidiary will acquire a 50% interest in
GP Corp for a total consideration of around #38 million.  Alliance Boots and BMP
will fund the subsidiary pro-rata to their shareholdings.  Alliance Boots will
meet its investment from existing resources and will equity account for its
interest in the joint venture.



The formation of the joint venture, which remains conditional upon receiving
various government and regulatory approvals, is expected to be completed in the
second half of 2007 and will expand Alliance Boots' wholesale presence to 15
countries.





For further information, please contact:



Investor Relations:
Gerald Gradwell/Chris Laud
Tel: +44 (0)20 7138 1118



Media:
Donal McCabe
Tel: +44 (0)20 7138 1164


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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