Chinese medical device firm Shenzhen Mindray Bio-Medical Electronics (Mindray), through a wholly-owned subsidiary, will acquire a 21.2% stake in APT Medical for CNY6.65bn ($927m).
Based in China, APT Medical is a manufacturer and supplier of electrophysiology (EP) and vascular intervention medical devices for the interventional medical field.
The company’s main products include catheters utilised in electrophysiology procedures and sheaths employed in invasive treatments targeting peripheral blood vessel blockages.
As per Mindray’s filing to the Shenzhen stock exchange, the company will purchase the stake in APT Medical from the latter’s current shareholders, which includes funds associated with Qiming Venture.
The deal values each APT Medical share at CNY471.12, which is a premium of 30.67% to the company’s last closing price of CNY360.53 on 26 January 2024.
Overall, the transaction values 100% of the Chinese firm at CNY30.2bn ($4.26bn), which is 25% more than the 26 January closing price.
Upon completion of the deal, the Mindray subsidiary will become APT Medical’s controlling shareholder. The transaction is contingent on approval from State Administration for Market Regulation (SAMR), which is China’s anti-monopoly watchdog.
The acquisition of stake is expected to help Mindray expand its presence in the cardiovascular disease-related sector.
Additionally, Mindray’s wholly-owned unit will have a 99.88% limited partner interest in Zhuhai Tongsheng, an investment fund that owns a 3.49% holding in APT Medical. This will be in exchange for paying CNY1.3m for a 0.12% general partner interest in Zhuhai Tongsheng.
Through the deal, the intervention medical devices maker expects to gain access to the overseas sales network of Mindray, which has over 50 subsidiaries outside of China.
Mindray does not currently offer any in-house products within the specialised areas in which APT Medical operates. However, the Chinese medical device company has certain products that are capable of aiding in the detection of cardiovascular disorders.
