Shanghai INT Medical Instruments Co., Ltd. (HKG: 1501) has announced its intention to acquire at least a 51% stake in its Chinese counterpart, Hangzhou Weiqiang Medical Technology Co.,Ltd. The acquisition will see INT Med make an initial upfront payment of RMB 30 million (USD 4.11 million), along with a substantial capital investment of RMB 200 million (USD 27.4 million), totaling an outlay of RMB 230 million for the controlling interest.
Significant Capital Infusion to Strengthen Weiqiang Medical Technology
The significant capital infusion of RMB 200 million into Weiqiang Medical Technology is expected to bolster the company’s financial position and support its operational and strategic initiatives. This acquisition not only provides a cash injection but also signals a commitment to the growth and development of DiNova by INT Medical Instruments.
Strategic Move for INT Medical Instruments
The acquisition of a majority stake in Weiqiang Medical Technology aligns with INT Medical Instruments’ strategic expansion plans. By securing a controlling interest in Weiqiang Medical Technology, INT Med is poised to enhance its market presence and leverage synergies between the two companies, potentially leading to increased competitiveness and innovation in the medical instruments sector.-Fineline Info & Tech
