Asian Star to merge with China's Baolong

Asian Star Development, which is listed in the USA and has its principaloffices in Hong Kong, has signed a letter of intent to merge with Shanghai Baolong Pharmaceutical Co, which is located in the "technological development zone" of Shanghai, China. Under the terms of the agreement, Baolong will acquire 80% of the total outstanding shares of Asian Star.

Stephen Chow, Asian Star's president, said the companies have been through months of due diligence and negotiations, and the deal is a sound one. He claimed that Baolong is an exciting company in terms of R&D and sells a variety of drugs distributed through over 400 customers in more than 20 provinces in China.