Shandong Weigao put up Biosensors stake for sale
By VCPOST Staff Reporter
Nov 21, 2013 10:32 PM EST
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A lab technician in Singapore performs quality control checks on a biodegradable stent, which is inserted into constricted coronary arteries to help keep them open and normalise blood flow during the treatment heart ailments, September 18, 2008. (Photo : Reuters)
Shandong Weigao Group Medical Polymer Co. Ltd. on Friday said that it will sell its entire stake in Singaporean medical device manufacturer Biosensors International Group Ltd.
According to a report by Reuters, Hong Kong-listed Shandong Weigao will sell its entire 21.7% stake in Biosensors for USD312.3 million. Shandong Weigao will divest the asset to focus on its core businesses.
The Biosensors stake will be sold to CB Medical Holdings Ltd. at SGD1.05 per share. The offering gives a 11.7% premium over Biosensors' last closing price, based on Shandong Weigao's filing with the Hong Kong Stock Exchange.
Reuters said that Shandong Weigao estimated a loss of CHY449 million (USD73.69 million) from the asset disposal. Meanwhile, proceeds from the deal will be used to strengthen the medical device company's main businesses, including medical consumables, blood purification and orthopedic products.
In 2006, Biosensors announced a joint venture with Shandong Weigao to market and distribute coronary stents in China. Its revenue for the half year ended September is at USD159.7 million, according to its website.
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