Stocks News
- Medtronic buys stake in Chinese Weigao
Date: 19-Dec-2007 Sources: (Xinhua Online)
BEIJING, Dec. 18 (Xinhuanet) -- Medtronic, Inc. and Shandong Weigao Group Medical Polymer Company Limited announced that they have agreed to form a joint venture to market therapies in the spine and orthopedics sector and that Medtronic would acquire a 15 percent equity interest in Weigao, media reported Tuesday.
The joint venture will market in China Medtronic's spinal products and Weigao's orthopedic products which include therapies for the hip, shoulder, spine and trauma, the two companies said.
Medtronic will purchase a 15 percent equity interest in Weigao for approximately 221 million U.S. dollars through the purchase of 80,721,081 newly issued H Shares of Weigao that are listed on the Hong Kong Stock Exchange at a purchase price of 1.138 Hong Kong dollars per share and an equal number of Weigao's unlisted ordinary shares from Weigao's existing shareholders at a purchase price of 10.247 Hong Kong dollars per share, the announcement said.
Medtronic will have a 51 percent stake in the joint venture, while Weigao will have a 49 percent stake. Medtronic will also have the right to nominate two non-executive directors to Weigao's board, the companies said.
Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company, alleviating pain, restoring health and extending life for people with chronic disease.
Weigao based in the Shandong province of the People's Republic of China, is the leading manufacturer in China of medical devices and single-use consumables including infusion sets, syringes, blood transfusion sets and blood bags as well as orthopedic, cardiovascular stent and blood purification products.
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