Golden Meditech medical device business raises USD 40 million

Aug 23 2010

Golden Meditech Holdings Limited ("Golden Meditech" or the "Group," 801.HK), China's leading integrated healthcare enterprise, is pleased to announce that its medical devices business has successfully raised USD 40 million from a number of renowned private equity investors where the proceeds will fund the construction of new production lines for both medical devices and medical accessories to fund the formation of joint-venture with Fenwal Inc. The Group's interest in medical devices business will be diluted to 74.123% upon completion.

The Group's medical devices business currently consists of its medical device production operation and distribution affiliate with the former being the first and largest autologous blood recovery system manufacturer in China, while the distribution affiliate currently represents the largest medical device distributor in China.

Mr. KAM Yuen, Chairman and Chief Executive Officer of the Group, said, "The successful fund raising will allow the Group to better capture the brilliant prospects and abundant growth opportunities in the industry amidst China's ongoing medical reform and expedite market penetration of our autologous blood recovery systems into mid-tier hospitals. In addition to enhancing the scalability of the Group's operation, the fund raising is also instrumental in reflecting the intrinsic value of our medical devices business."

Mr. KAM gave emphasis to the fact that the Group saw the successful listing of two of its affiliates, China Cord Blood Corporation (CO.US) and FunTalk China Holdings Limited (FTLK.US) in the US at the end of 2009. Based on their previous closing prices, the current combined market value of the Group's stakes in these two affiliates are close to USD 261 million. Going forward, we will continue to expand each of these operations while seeking to unlock the intrinsic value of each to enhance the return for the Group and its shareholders."

SOURCE Golden Meditech Holdings Limited