Golden Meditech Expects to Declare a Special Dividend Following the Completion of the Fortress Transaction

HONG KONG, April 29, 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 intends to declare a special dividend and issue bonus warrants to its qualifying shareholders following the completion of the sale of its interest in Fortress Group Limited ("Fortress").

On 25 March 2014, Golden Meditech announced the proposed sale of its interest in Fortress for a cash consideration of US$101,264,437 (equivalent to approximately HK$789,862,611). In acknowledgment of the continuous support and trust from its shareholders, the Company declares a special dividend of HK$3 cents per consolidated share (i.e. 2 ordinary shares before the share consolidation becomes effective). The Company's qualifying shareholders may also elect to receive new scrip consolidated shares in lieu of cash for the special dividend.

Mr. Kam Yuen, Chairman and Chief Executive Officer of the Group, said, "Golden Meditech has surplus cash and a strong balance sheet. We intend to share the proceeds with our shareholders in the form of special dividend and bonus warrants as we complete the sales of our non-strategic assets. The rest of the proceeds will be used for the development of our core healthcare businesses in mainland China, as part of our long term development plan."

In addition, the Board proposes the issuance of one year bonus warrants on the basis of 2 warrants for every 11 consolidated shares held by qualifying shareholders and the subscription price of each new consolidated share is HK$1.40. The Company intends to have the bonus warrants listed on the Stock Exchange of Hong Kong.

Mr. Kam continued, "The issuance of bonus warrants will not only give the qualifying shareholders the opportunities to increase their interests in the Company and share the Company's future achievements but also allow the Company to strengthen its capital base, enabling it to seize any opportunities arising in China's healthcare sector."

In pursuance of facilitating the distribution of special dividend and the issuance of bonus warrants, the Board proposes to implement the share consolidation on the basis that every 2 issued and unissued shares with a par value of HK$0.10 each in the share capital of the Company will be consolidated into 1 consolidated share with a par value of HK$0.20 each. Upon the share consolidation becoming effective, each unit of the Company's Taiwan depository receipts listed on the Taiwan Stock Exchange Corporation will represent 1 consolidated share. In order to have sufficient authorized share capital to accommodate future expansion and growth, the Board also proposes to increase the authorized share capital of the Company from HK$400,000,000 to HK$600,000,000 by the creation of an additional 1,000,000,000 consolidated shares upon the share consolidation becoming effective.

Immediately upon the share consolidation and share capital increase becoming effective and assuming no further Shares will be issued or no Shares will be repurchased from the date of this announcement up to the extraordinary general meeting, the authorized share capital of the Company will be HK$600,000,000 divided into 3,000,000,000 consolidated shares, and the issued share capital of Company will be HK$341,758,733.20 divided into 1,708,793,666 consolidated shares.

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 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