Weigao becoming a major shareholder of Biosensors
12 June 2011 ‐ Biosensors International Group, Ltd. (“Biosensors”) and Shandong Weigao Group Medical Polymer Company Limited (“Weigao”) announced the restructuring of the shareholding in JW Medical Systems Ltd (“JWMS”) whereby Biosensors acquires the remaining 50% of JWMS from Weigao. After completing this transaction, JWMS will be a wholly-owned subsidiary of Biosensors.
Subject to the obtaining of the required approvals, the purchase consideration (the “Purchase Consideration”) for Weigao shall comprise: (i) a cash payment of S$160,000,000; (ii) the issuance to Weigao of 260,000,000 new ordinary shares of Biosensors, and; (iii) the issuance to Weigao of US$120,043,000 principal amount of 4% convertible notes due 2014 from Biosensors.
After the completion of this transaction, Weigao will be a strategic shareholder of Biosensors and will participate in Biosensors’ development through its membership in Biosensors’ board.
Mr. Yoh-Chie Lu, Chairman of Biosensors said, “Since commercialization of its drug-eluting stents (“DES”) in early 2006, JWMS has become one of the top suppliers of the local DES market in China. This acquisition demonstrates a joint dedication between Biosensors and Weigao to foster stronger relationships as long-term strategic partners. The market for DES continues to grow rapidly in China and obtaining full ownership of JWMS,
Biosensors will instantaneously become a stronger player in this vital market. At the same time, with Weigao as a strategic shareholder of Biosensors and our unique proprietary drug and polymer technologies, we are set to become a major DES supplier in China for many years to come.“
“As one of the largest economy in the world, China presents a fastest growing market for companies with innovative technologies and operational excellence.” Mr. Chen Xue Li, Chairman of Weigao said, “Being a key shareholder of Biosensors, we are committed to make Biosensors the premier medical technology company in China and the global market.”
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