The medical devices business of Golden Meditech Holdings, a China-based healthcare enterprise, has raised USD40m from private equity investors.
The proceeds will fund the construction of new production lines for both medical devices and medical accessories to fund the formation of a joint venture with Fenwal.
The group’s interest in the medical devices business will be diluted to 74.123 per cent 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 and the latter the largest medical device distributor in China.
Kam Yuen, chairman and chief executive officer of the group, says: "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 fundraising is also instrumental in reflecting the intrinsic value of our medical devices business."
The group listed two of its affiliates, China Cord Blood and FunTalk China Holdings, 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 USD261m.