Orchid Asia Sells LifeTech Stake to Medtronic (Asia)

Source: Greater China Private Equity Review  |  Author: Maggie Lee

Hong Kong-based private equity firm Orchid Asia Group Management has agreed to sell 95 million shares, equivalent to a 19 percent stake, in Hong Kong-listed Chinese medical device manufacturer LifeTech Scientific Corporation to U.S.-based medical technology company Medtronic. The deal is valued at HKD361 million (approximately US$46.6 million). Medtronic also purchased a convertible note, representing a 7.4 percent equity stake, from LifeTech for US$19.6 million. Orchid first invested in LifeTech in 2006 and LifeTech listed on the Hong Kong Stock Exchange in 2011. The transaction marks Medtronic’s second investment in a Chinese company in October 2012, after agreeing to purchase China Kanghui Holdings for US$816 million.