(Repeats story published late Thursday; no changes to text)
* Biostime buying a company similar to its market value
* Australian vitamin makers popular among Chinese suitors
By Byron Kaye and Denny Thomas
SYDNEY/HONG KONG, Sept 17 (Reuters) - Hong Kong-listed Biostime International Holdings 1112.HK said on Thursday it was buying Australian vitamin maker Swisse Wellness for about A$1.4 billion ($1.0 billion).
The deal, which sources familiar with the matter said earlier on Thursday could be worth around A$1.6 billion, comes as Australian vitamins manufacturers have been enjoying a rush of popularity in China because of a weak Australian dollar and a trade deal that has cut import taxes for Australian companies selling products into the mainland. ID:nL4N11M1EI
"The strong appetite of Chinese consumers for overseas quality supplements is expected to support Swisse's strong momentum for growth," Biostime said in a filing on the Hong Kong stock exchange.
"The group believes that the acquisition will enable Swisse to grasp this growing demand by growing Internet sales while activating sales through the group's extensive distribution channels, thus resulting in significant revenue synergies."
For Biostime -- a dietary supplements maker -- the acquisition is a big bite, as the deal value is similar to its own $1.1 billion market capitalisation. The company is taking out a bridge loan to part-fund the acquisition, Biostime said.
Trading in Biostime's shares will resume on Friday after it was suspended earlier on Thursday pending the announcement. ID:nWNBS01D4T
Investor interest in Australian vitamin makers has been rising. On Wednesday, Australian vitamin maker Vitaco Holdings Ltd VIT.AX debuted at a 23 premium to its issue price after raising A$232 million in an initial public offering.
Another Australian vitamin maker, Blackmores Ltd BKL.AX , has seen its shares grow four-fold in the past year, thanks largely to a surge in Chinese sales.
Biostime beat Shanghai Pharmaceuticals Holding 601607.SS and Chinese private equity firm Hony Capital in the Swisse sale which was managed by Goldman Sachs Group Inc (NYSE:GS) GS.N , the Australian newspaper and Fairfax Media said in reports, citing unnamed sources.
Hony Capital and Shanghai Pharmaceuticals could not be immediately reached for comments.
HSBC HSBA.L is advising the buyer, one of the sources familiar with the matter said. Swisse declined to comment, while Goldman Sachs was not immediately available for comment.
($1 = 1.3949 Australian dollars)
($1 = 1.3968 Australian dollars)