Central American Equities agrees to merge with Chinese pharmaceutical manufacturer Ostar

By E. Janene Geiss

Philadelphia, March 20 - Central American Equities Corp. announced Monday that it plans to acquire Ostar Pharmaceutical, Inc.

Ostar Pharmaceutical owns 60% of Hebei Aoxing Pharmaceutical Group, which is involved in the business of manufacturing and distributing analgesic drugs in the People's Republic of China, according to a company news release.

The agreement provides that at a closing, which is expected to occur later in March, Ostar will be merged into Ostar Acquisition Corp. and become a wholly owned subsidiary of Central American Equities, the company said.

American Union Securities has served as special adviser to Hebei Aoxing in connection with the merger, officials added.

Hebei Aoxing is a corporation organized under the laws of the People's Republic of China that has developed a patented manufacturing process for a variety of generic analgesic drugs including oxycodone, pholcodine, naloxone and tilidine. The company is one of only a handful of companies in China to be granted the license to manufacture these drugs and is working closely with the 00Chinese government to assure their availability throughout China, officials said.

The company and Ostar signed a letter of intent to merge Feb. 13 and entered into the merger agreement March 13, officials said.

American Union Securities has been retained by Ostar to advise the company on this transaction and to assist management with the execution of its business plan over the next 12 months. American Union Securities is a full service investment-banking firm based in New York.

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