Medtronic, a US-based medical device maker that at the start of the month acquired China Kanghui Holdings, is investing $66.2m to acquire a minority stake in LifeTech Scientific, a Hong Kong-listed maker of cardiovascular devices.
Medtronic is paying $46.6m at HK3.80 per share for a 19% equity interest in the Chinese company, followed by a $19.6m convertible note for an additional 7.4% stake. The deal gives Medtronic the right to sell LifeTech products around the world and the opportunity to acquire further shares of the company depending on sales and developmental milestones.
Mike Coyle, president of the cardiac and vascular group at Medtronic, the world’s biggest medical device maker, said: “China is key to our global strategy as we continue to expand our geographic footprint and strive to meet the needs of local cardiovascular patients, and this agreement reaffirms our commitment to this important market.”
Before its flotation last year, LifeTech had venture backing from Orchard Asia in 2006.