Golden Meditech’s hospital subsidiary, Golden Meditech Hospital Group, has entered into an agreement to issue senior five per cent redeemable convertible notes due in 2014 with an aggregate principal amount of USD28m (HKD217m).
The monies raised will be used to accelerate business developments in China.
Under the agreement, Golden Meditech Hospital Group will issue 15,747 new shares to investors upon full conversion, valuing the entire group in excess of USD200m. Upon full conversion, the note holder will hold approximately 13.61 per cent of enlarged share capital of Golden Meditech Hospital Group, and Golden Meditech’s holdings will be diluted from current 60 per cent to 51.8 per cent.
Golden Meditech completed its strategic entry into China’s hospital management and service market in June this year, and now owns the first nationwide management license granted by China government to a foreign entity.
Kam Yuen, chairman of Golden Meditech, says: "China’s hospital management industry embraces a new era of development as the new medical reform aimed at separating hospital ownership and management and improving hospital operational efficiency will transform the hospital market entirely."
The group expects to accelerate the development of its hospital management operations in China.
Golden Meditech operates an integrated portfolio of healthcare businesses including medical devices, healthcare services and natural herbal medicines.
