A Deutsche Bank-led consortium is offering four billion yuan (517 million dollars) for 40 percent of China's largest traditional medicine producer, state media said Tuesday.The price offered by the Deutsche Bank consortium is the highest among the five potential investors in state-owned Sanjiu Enterprise Group, the 21st Century Business Herald reported, citing an unnamed source.The five potential investors are a Deutsche Bank-led consortium, China Resources Group, a New World Group consortium, a Shanghai Industrial Investment (Holding) Co Ltd consortium and the Fosun Group, the report said.The newspaper cited the source as saying that the Deutsche Bank consortium and China Resources Group are likely to be the front-runners as the other three investors have been left out of the shortlist due to low bids.China Resources Group, which is owned by the central government, is the front runner, planning to buy 70 percent of Sanjiu Group for 3.9 billion yuan.According to the bid requirements, Sanjiu Group is intended to remain controlled by the state-owned asset regulator, which in turn comes directly under the cabinet.Any cash paid must also be enough to pay off bank loans worth of 3.7 billion yuan owed by Sanjiu Medical and Pharmaceutical Co Ltd, the group's listed arm and core business.Sanjiu Group has estimated net assets of around six billion yuan and is restructuring its debt of 10.7 billion yuan.Both Deutsche Bank and Sanjiu Group declined comment when approached by AFP Tuesday.
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