Medtronic Completes Minority Investment of Shandong Weigao in China
Date：2013-08-27
NEWS RELEASE
Contacts:
Jeff Warren Chuck Grothaus
Medtronic Investor Relations Medtronic Public Relations
763-505-2696 763-505-2614
Phyllis Chan,
Weigao Investor Relations
852-2838-1868
FOR IMMEDIATE RELEASE
MEDTRONIC COMPLETES MINORITY INVESTMENT OF SHANDONG WEIGAO IN CHINA
MINNEAPOLIS and HONG KONG – Dec. 18, 2008 – Medtronic, Inc. (NYSE: MDT) and Shandong Weigao Group Medical Polymer Company Limited (Hong Kong Stock Exchange: 8199) (“Weigao”) today announced the completion of Medtronic’s equity investment in Weigao. As a result of the investment, Medtronic now holds a 15 percent equity stake in Weigao.
In accordance with the previously disclosed terms of Medtronic’s equity investment in Weigao, Medtronic purchased a 15 percent equity interest in Weigao for approximately HK $1,726 million (U.S. $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 Weigao shares, Mr. Jean-Luc Butel and Mr. Li Bing Yung, two nominees designated by Medtronic, have been appointed as non-executive directors of Weigao, effective on the completion date.
In connection with and as part of Medtronic’s equity investment in Weigao, the parties and certain of their affiliates undertook a joint venture to market in China Medtronic’s spinal products and Weigao’s orthopedic products which include therapies for the hip, shoulder, spine and trauma. The joint venture entity commenced operations in September 2008, with an affiliate of Medtronic holding a 51 percent interest in the joint venture and Weigao holding the remaining 49 percent interest.
Medtronic’s equity investment in Weigao and the collaborative joint venture undertaken by the two companies enables them to further build on each other’s product, distribution and marketing platforms, thereby placing both Medtronic and Weigao in a much better strategic position to take advantage of existing and future opportunities in manufacturing and distribution in the spinal, orthopedic and trauma sectors in China.
“This is a tremendous milestone in our efforts to build a broad presence in China,” said Bill Hawkins, Medtronic’s chairman and CEO. “This region of the world is critical to our global growth strategy. Both Medtronic and Weigao will benefit from the combination of our strengths.”
Mr. Chen Xue Li, chairman of the Weigao said, “The opportunities before Weigao and Medtronic in China have already proven vast and valuable to both companies. Weigao can now fully leverage the respective strengths of each entity to expand market presence and ensure success in our growth goals.”
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.
About Medtronic
Medtronic, Inc. (www.medtronic.com), headquartered in Minneapolis, Minnesota, United States, is the global leader in medical technology – alleviating pain, restoring health, and extending life for millions of people around the world.
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic’s Annual Report on Form 10-K for the year ended April 25, 2008. Actual results may differ materially from anticipated results.
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