Golden Meditech Consolidated Shareholdings in GHMG to Maximise Economic Interests in Hospital Management Business
HONG KONG, Nov. 7, 2014 /PRNewswire/ -- Golden Meditech Holdings Limited ("Golden Meditech", together with its subsidiaries collectively as the "Group", 801.HK; 910801.TW), a leading integrated healthcare enterprise in China announced today that it has acquired the remaining 17.33 percent of shareholdings in GM Hospital Group Limited ("GMHG"). The consideration will be satisfied by cash of approximately HK$64.99 million and by means of HK$97.49 million consideration shares at HK$1.26 each. Subject to the agreement, only one-third of the consideration shares held by Golden Brilliant Group Limited, one of the vendors are released on or before 31 October in each of the consecutive three years after the completion. Upon completion, Golden Meditech will own 100 percent shareholding in GHMG, which specalised in hospital management business. GMHG currently operates Shanghai East International Medical Center ("SEIMC") and Beijing Qinghe Hospital ("Qinghe Hospital") and owns 56.00 percent in SEIMC and 82.73 percent in Qinghe Hospital.
Leveraging on its renowned hospital brand, the SEIMC provides premium healthcare services to the high-end market segment in Shanghai and the surrounding neighbourhoods. Meanwhile, the Qinghe Hospital is located at Haidian District in Beijing which specialised not only in haematology but also provides a broad range of medical disciplines such as obstetrics and gynaecology, paediatrics, ophthalmology and dentistry to address patients in Beijing with different needs. With a total floor area of approximately 75,000 square meters, this hospital is designed to meet the highest healthcare standards in mainland China, providing 600 beds, including 48 beds for the haematology wards. Even though Qinghe Hospital remains at the early stage of development, it has made significant progress in-line with the management's expectation. Golden Meditech believes the financial performance of Qinghe Hospital will be greatly improved in the forthcoming period, delivering sizeable contributions to the hospital management business.
Mr. Kam Yuen, Chairman and Chief Executive Officer of the Group said, "The mainland China's government has been committed to pushing forward the healthcare reforms, accelerating the development of the entire healthcare industry. Being a forerunner in hospital management business, Golden Meditech is devoted to taking bold action to seize opportunities in the industry amidst the ongoing healthcare reform. With our hospital management business going from strength to strength and the progress of Qinghe Hospital has met with anticipation during the trial run, we have strong confidence in the future of the business. As we believe the growth momentum of hospital management business will start to gain traction and become our core growth driver in the future, we are delighted to capitalize on this timely opportunity to consolidate our shareholdings in GMHG. The transaction will not only enable Golden Meditech to maximise its economic interests in the hospital management business, but also strengthen the core competence and competitiveness of the Group."
About Golden Meditech Holdings Limited
Golden Meditech Holdings Limited (www.goldenmeditech.com) is China's leading integrated-healthcare enterprise. Golden Meditech is a first-mover in China, having established dominant positions in medical devices, and cord blood storage and hospital management businesses of the healthcare services markets, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities. Going forward, the Group will continue to pursue a leading position in China's healthcare industry both through organic growth and strategic expansion.
SOURCE Golden Meditech Holdings Limited
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