Golden Meditech Enters Into Settlement Agreement With PAGAC
Published: Nov 03, 2016
HONG KONG, Nov. 3, 2016 /PRNewswire/ -- Golden Meditech Holdings Limited (SEHK stock code: 00801, TWSE stock code: 910801) ("Golden Meditech" or the "Company", together with its subsidiaries, the "Group"), a leading integrated healthcare enterprise in China, announces that its wholly-owned subsidiary, GM Investment Company Limited ("GM Investment"), has entered into a conditional settlement agreement with PAG Asia I LP and its assignee PAGAC Fortress Holding I Limited ("PAGAC") and Fortress Group Limited ("Fortress").
Pursuant to the settlement agreement, GM Investment has obtained full authority from Fortress to recover an outstanding amount of approximately US$250 million from Sanpower Group Limited1 ("Sanpower"). Accordingly, GM Investment has agreed to pay an amount of US$180 million to PAGAC as the final settlement to resolve the claim made by PAGAC. The settlement agreement will become effective upon the approval of shareholders ("Effective Date"). GM Investment will pay the settlement amount in three installments, with the first installment of US$70 million payable within 5 business days from the Effective Date, and the second and third installments of US$55 million each payable within 9 months and 18 months from the Effective Date respectively. After full payment of the settlement sum, GM Investment will be released and discharged from all claims made by PAGAC, and will bring to the Group a gain of approximately US$70 million.
Further details of the settlement agreement will be published by the Company in accordance with the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and posted on the Company's website as follows: http://www.goldenmeditech.com/eng/ir/announcements.php
About Golden Meditech Holdings Limited (SEHK stock code: 00801, TWSE stock code: 910801)
Golden Meditech (www.goldenmeditech.com) is a leading integrated-healthcare enterprise in China. It is a first-mover in China, having established its dominant positions in several markets including the medical devices market, the cord blood storage market and the hospital management market in the healthcare industry, thanks to its strengths in innovation and market expertise and the ability to capture emerging market opportunities. Going forward, Golden Meditech will continue to pursue a leading position in China's healthcare industry both through organic growth and strategic expansion.
About Sanpower Group Limited1
Sanpower is a well-known private enterprise in Jiangsu Province. At present, both of its total assets and annual turnover have exceeded RMB100 billion. It was ranked in the "Top 500 Chinese Enterprises" for the 13th consecutive year. Its subsidiaries include listing companies such as Hiteker (600122.SH), NJXB (600682.SH) and IDT International (00167.HK), etc.
About PAGAC and Fortress Group Limited
PAGAC is a closed-end fund with investments across the retail, pharmaceutical, auto services, financial services and media/entertainment sectors. It is also the controlling shareholder of Fortress.
The English name of Sanpower Group Limited is for identification purpose only.
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SOURCE Golden Meditech Holdings Limited