HK Stock Market Move | LIFETECH SCI(01302) falls more than 15%, intending to acquire 96.46% equity of Hua Yi Sheng Jie for 1.87 billion yuan, payment will be made with convertible bonds.

LIFETECH SCI (01302) fell more than 15%, dropping by 15.58% to 1.95 Hong Kong dollars, with a turnover of 273 million Hong Kong dollars as of the time of writing. On the news front, on the evening of May 22, LIFETECH SCI announced that it plans to acquire approximately 96.46% equity of domestic congenital heart occluder manufacturer Huayi Shengjie held by AUT-VII, a subsidiary of Hillhouse Capital, at a cost of about 1.873 billion yuan. The consideration will be paid entirely in the form of convertible bonds, with each bond bearing an annual interest rate of 3.5% and paid quarterly in cash over a period of 3 years. The initial conversion price is set at 2.5 Hong Kong dollars per share, representing a premium of about 8.2% over the closing price of 2.31 Hong Kong dollars on May 22. Upon complete exercise, about 860 million new shares will be issued, accounting for approximately 15.66% of the enlarged share capital and making Hillhouse Capital the largest single shareholder of LIFETECH SCI. Huayi is primarily engaged in the research, development, manufacturing, and sales of vascular interventional medical devices. Its products are mainly used for the treatment of congenital heart defects and the prevention of cardioembolic strokes. The company introduced one of the first domestically produced occluders for congenital heart disease in China in 2003, and launched China's first atrial septal defect (PFO) occluder product in 2009.