Shanghai, China – 12 May, 2014 – Hong Kong-listed MicroPort Scientific Corporation (00853) ("MicroPort") announced the completion of the issuance of US$100 million convertible bonds to GIC, Singapore's sovereign wealth fund and one of the largest investment management organizations in the world.
"GIC, being a long-term investor in China since 1995, is confident in the future growth and management capability of MicroPort Scientific Corporation. We believe MicroPort has good potential to become a global medical devices player in the future," said Sharon Sun, Head of Direct Investment Group of Greater China, GIC Special Investment.
GIC's investment showed its long-term confidence in MicroPort with conversion price of $HK6.84 (US$0.88) for the convertible bonds due 2019, a premium of 24 percent over HK$5.51, the closing price of MicroPort on the last trading day before the transaction.
MicroPort has demonstrated its strong research and development capability and has been expanding its brand influence with a comprehensive product pipeline in recent years. In addition to the organic growth, MicroPort's strategic M&A deals with global giants, including the acquisition of Wright Medical's OrthoRecon business in 2013 and its joint venture with Sorin Group to market and develop cardiac rhythm management devices in 2014, are enabling MicroPort to expand into more overseas markets and gain cutting-edge technologies.
"Considering the recent market conditions, it represents an opportunity for MicroPort to enhance its working capital and strengthen its capital base and financial position." stated Sun Hongbin, Chief Financial Officer of MicroPort. "It also represents another significant step forward for MicroPort in gaining recognitions from international investors as a leading Chinese medical device company." The net proceeds from the issue of the convertible bonds will be used for the repayment of a portion of the Otsuka loan and, prior to such repayment, for short-term investments in cash and cash equivalents. Based on the initial conversion price of HK$6.84 and assuming full conversion of the bonds, the bonds will be convertible into 113.67 million new shares, representing approximately 7.44 percent of the ordinary share capital of MicroPort, as enlarged.
GIC is a leading global investment firm with well over US$100 billion in assets under management. Established in 1981, the firm manages Singapore's foreign reserves and is uniquely positioned for long-term and flexible investments across a wide range of asset classes, including public equities, fixed income, real estate, and private equity. In private equity, GIC invests through funds as well as directly in companies, partnering with our fund managers and management teams to help world class businesses achieve their objectives. GIC employs more than 1,200 people across offices in Singapore, Beijing, London, Mumbai, New York, San Francisco, Sao Paulo, Seoul, Shanghai, and Tokyo.