MINNEAPOLIS & HONG KONG--(Business Wire)--Medtronic, Inc. (NYSE:MDT) ("Medtronic") and Shandong Weigao Group
Medical Polymer Company Limited (Hong Kong Stock Exchange:8199)
("Weigao") today announced that they have agreed to form a joint
venture to market therapies in the spine and orthopedics sector and
that Medtronic would acquire a 15% equity interest in Weigao.
The joint venture will market in China Medtronic's spinal products
and Weigao's orthopedic products which include therapies for the hip,
shoulder, spine and trauma. Under the joint venture agreement ("Joint
Venture Agreement"), Medtronic will have a 51% interest in the joint
venture and Weigao will have a 49% interest.
Medtronic will purchase a 15% equity interest in Weigao for
approximately HK$1,726 million (US$221 million) through the purchase
of 80,721,081 newly issued H Shares of Weigao that are listed on the
Hong Kong Stock Exchange at a purchase price of HK$11.138 per share
and an equal number of Weigao's unlisted ordinary shares from Weigao's
existing shareholders at a purchase price of HK$10.247 per share. In
connection with the purchase of the shares, Medtronic will have the
right to nominate two non-executive directors to Weigao's board of
directors as long as Medtronic owns 3.75% of the H Shares.
Closing of the transaction is subject to various conditions,
including approval of the Chinese regulators and Weigao's
shareholders.
"China is key to our global strategy as we continue to expand our
geographic footprint," said Bill Hawkins, Medtronic president and CEO.
"Weigao has a broad orthopedic and trauma product line that
compliments Medtronic's offerings, but even more importantly, we feel
we can generate synergies with their very strong presence and
reputation in China. We view Weigao as an ideal strategic partner."
Mr. Chen Xue Li, chairman of Weigao, said, "We take great pride in
forming a strategic alliance with Medtronic, the world's leading
medical technology company. The collaboration will further broaden our
business and raise our R&D capability, leveraging our extensive
customer network and quality production, paving the way for Weigao to
be the leading medical device company in Asia. With our localized
knowledge, we hope to play an important role in Medtronic's China
strategy bringing Medtronic's products to benefit millions of patients
in China."
About Medtronic
Medtronic, Inc., (www.medtronic.com) headquartered in Minneapolis,
is the world's leading medical technology company, alleviating pain,
restoring health and extending life for people with chronic disease.
About Weigao
Weigao (www.weigaogroup.com) based in the Shandong province of the
People's Republic of China, is the leading manufacturer in China of
medical devices and single-use consumables including infusion sets,
syringes, blood transfusion sets and blood bags as well as orthopedic,
cardiovascular stent and blood purification products.
This news release contains forward-looking statements regarding
our operating momentum, new products and other developments, which are
subject to risks and uncertainties, such as competitive factors,
difficulties and delays inherent in the development, manufacturing,
marketing and sale of medical products, integration of acquired
businesses, government regulation, general economic conditions and
other risk and uncertainties described in Medtronic's Annual Report on
Form 10-K for the year ended April 27, 2007. Actual results may differ
materially from anticipated results. Medtronic does not undertake to
update its forward-looking statements.
Medtronic
Jeff Warren, 763-505-2696 (Investor Relations)
Marybeth Thorsgaard, 763-505-2644 (Public Relations)
or
Weigao
Callis Lau, 852-2136-6952 (Media Relations)
Phyllis Chan, 852-2838-1868 (Investor Relations)
Copyright Business Wire 2007
