Group Also Increasing Stake in Hospital Management Business to 75%
HONG KONG, June 28, 2011 /PRNewswire-Asia-FirstCall/ -- Golden Meditech Holdings Limited ("Golden Meditech," together with its subsidiaries collectively as the "Group," - 801.HK; 910801.TW), a leading integrated healthcare enterprise in China, is pleased to announce that the Group has reached a multi-lateral agreement to acquire 56% of Shanghai East International Medical Centre (SEIMC) with a total consideration of US$10 million (equivalent to HK$1.48 per share) in cash and shares.
Mr. Kam Yuen, Chairman of the Group commented that the acquisition of SEIMC will facilitate the Group's penetration into the premium segment and enable the Group to leverage on SEIMC's premium clientele and brand equity and strong reputation amongst both Chinese and expatriate communities. This, in turn, will reinforce the Group's brand presence and elevate its market position in the premium healthcare service segment, creating greater synergies within the Group's different operations, accelerating the development of the Group's hospital management business to be on par with global standards, and strengthening the Group's overall strategic position for long term growth.
As China's first foreign entity that has been granted a national hospital management license, the Group is currently managing China's leading haematology hospitals in Beijing and Shanghai under the Daopei Hospital brand name.
He reiterated the fact that building a strong brand in the hospital market is a long term commitment though once a brand has gained greater recognition, growth will come through replicating successful operations. In view of the Group advantages in capitalising opportunities the demand-driven market and on the back of China's on-going medical reform, the Group intends to further expand its hospital operations through suitable avenues.
At the same time, the Group has also entered into a separate agreement to increase its stake in the hospital management subsidiary, GM Hospital Group, by way of a share swap share swap agreement, where the Group will issue 131,756,765 new shares to New Horizon Capital, LLC ("New Horizon") at HK$1.48 per share in exchange for New Horizon's 15% stake in GM Hospital Group, increasing the Group's share holding in GM Hospital Group from 60% to 75%. Upon the completion of the transaction, New Horizon will become a shareholder with 6.44% share of the Company.
About Golden Meditech Holdings Limited
Golden Meditech Holdings Limited is China's leading integrated-healthcare devices and service operator, and the first medical device enterprise that was publicly listed outside of the PRC on the Stock Exchange of Hong Kong Limited (HKEx) and the Taiwan Stock Exchange (TSE). Golden Meditech is a first-mover in China, having established dominant positions in medical devices and healthcare services markets over the years, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities. Going forward, the Group will continue to pursue a leading position in China's healthcare industry both through organic growth and strategic expansion.
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