China Nepstar Chain Drugstore Ltd. Announces Receipt of "Going Private" Proposal

SHENZHEN, ChinaJuly 6, 2015 /PRNewswire/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("Nepstar" or the "Company"), a leading retail drugstore chain in China based on the number of directly operated stores, today announced that its board of directors has received a preliminary non-binding proposal letter, dated July 6, 2015, from Simin Zhang, chairman of the board of directors of the Company, and China Neptunus Drugstore Holding Ltd., an investment vehicle wholly owned by Mr. Zhang("Neptunus Holding", and collectively with Mr. Zhang, the "Buyer Parties"), pursuant to which the Buyer Parties propose to acquire all of the outstanding ordinary shares (the "Shares") and the American Depositary Shares ("ADSs", each representing two Shares) of the Company, in both cases, that are not already beneficially owned by the Buyer Parties and their affiliates at a price of US$1.30 per Share or US$2.60 per ADS, as the case may be, in cash, in a going private transaction(the "Acquisition"), subject to certain conditions. 

According to the proposal letter, the Acquisition is intended to be financed with debt or equity capital or a combination thereof.  Also according to the proposal letter, on July 3, 2015New Wave Developments Limited, a wholly owned subsidiary ofNeptunus Holding, completed an acquisition of fifty million (50,000,000) Shares from Capital Eagle Global Limited. Furthermore, the proposal letter specifies that the Buyer Parties' proposal constitutes only a preliminary indication of interest, and is subject to negotiation and execution of definitive agreements relating to the proposed transaction.  A copy of the proposal letter is attached hereto as Exhibit A.

The Company expects that its board of directors will form a special committee consisting of independent directors (the "Special Committee") to consider this proposal. The Company also expects that the Special Committee will retain financial, legal and other advisors to assist it in its review of the Acquisition.The Company cautions its shareholders and others considering trading its ordinary shares that no decisions have been made with respect to the Company's response to the proposed transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.

About China Nepstar Chain Drugstore Ltd.

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is a leading retail drugstore chain in China. As of March 31, 2015, the Company had 1,969 directly operated stores across 74 cities, one headquarter distribution center and 15 regional distribution centers in China. Nepstar uses directly operated stores, centralized procurement and a network of distribution centers to provide its customers with high-quality, professional and convenient pharmaceutical products and services and a wide variety of other merchandise, including OTC drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products. Nepstar's strategy of centralized procurement, competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the continuing economic growth in China and take advantage of the demographic trend in China to achieve a strong brand and leading market position. For further information, please go to