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Publish Date : 01-Feb-2013

Medtronic, Inc. and LifeTech Scientific Corporation (8122:HK) today announced the closing of a transaction creating a strategic alliance that brings together the resources and technologies of the world’s largest medical device company with the local market expertise, brand recognition and growth potential of a recognized leader in China, which is fast becoming one of the world\'s largest device markets. The strategic alliance will allow each company to serve cardiovascular patients and clinicians who previously have been unreachable by either company alone, and to develop a more robust cardiovascular platform.

Under the terms of the definitive agreements, Medtronic purchased a 19.0 percent equity interest in LifeTech, and received the right of first negotiation to distribute current and future LifeTech products as well as the opportunity to acquire additional ownership in LifeTech. Medtronic will also provide services and expertise to LifeTech to support its continued growth, development pipeline and manufacturing capabilities to better serve patients and clinicians in China and globally.

Medtronic purchased its initial equity investment for HK$3.80 per share or HK$361 million (approximately US$46.5 million) in total. Medtronic also purchased a HK$152 million (approximately US$19.6 million) convertible note representing an additional approximately 7.4 percent equity on a fully-diluted post-conversion basis. Medtronic will also have the opportunity to acquire additional convertible notes. The investment is consistent with Medtronic\'s capital allocation strategy and meets internal financial return expectations.

The transaction closing follows the receipt of approvals from the shareholders of LifeTech and applicable Chinese and Hong Kong regulatory authorities.

In collaborating with leading clinicians, researchers and scientists, Medtronic offers the broadest range of innovative medical technology for the interventional and surgical treatment of cardiovascular disease and cardiac arrhythmias. The company is continuing its commitment to offering products and services that deliver clinical and economic value to healthcare consumers and providers worldwide.

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