Chinese medical device company Shenzhen Mindray Bio-Medical Electronics said it planned a 6.65 billion yuan ($927 million) deal to gain control of APT Medical to expand in cardiovascular disease-related businesses.
A wholly owned unit of Mindray will buy a 21.12% stake in APT Medical from current shareholders, including funds linked to venture investment firm Qiming Venture, for 6.65 billion yuan, Mindray said on Sunday.
The Mindray unit will become the controlling shareholder of APT Medical after the transaction, according to a Mindray filing to the Shenzhen stock exchange.
APT Medical’s main products include catheters for use in electrophysiology, an area that involves measuring the electrical system of heart for abnormalities, and sheaths for use in invasive treatments for blockage in peripheral blood vessels.
The 21.12% stake purchase priced each APT Medical share at 471.12 yuan, a 30.67% premium to APT Medical’s last closing price of 360.53 yuan.
Mindray said the deal is pending approval from China’s anti-monopoly watchdog. It also involves the Mindray unit buying some general partner interest in a company that holds a 3.49% stake in APT Medical for 1.3 million yuan.
The broader market for medical devices in electrophysiology and blood vessel interventional treatments in China is still dominated by foreign rivals such as Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, APT Medical said in its 2023 half-year report in August.
Mindray does not currently have in-house products in the specific areas that APT Medical specialises in, though it does have some products that can be used to support the diagnosis of cardiovascular diseases more broadly.
Mindray’s major acquisitions in recent years include a 545 million euros ($591.00 million) deal for Finland-based HyTest Invest Oy announced in 2021.
Reuters