Business
Receipt of investment and joint venture in China
Receipt of investment and joint venture in China.
About this update from Batm Advanced Communications Ltd.
[{"type":"text","content":"\n \nRNS Number : 7184C BATM Advanced Communications Ld 30 June 2016 \n\n30 June 2016\n \nBATM Advanced Communications Limited\n(\"BATM\" or \"the Group\")\n \nBATM's Adaltis to receive investment and enters into Strategic Joint Venture in China \n \nBATM Advanced Communications Limited (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce that its wholly-owned subsidiary Adaltis, a manufacturer of medical diagnostics equipment, has entered into an investment agreement and a strategic joint venture with its Chinese partner, Egens Biotechnology Company Ltd. (\"Egens\"), a leading biotechnology company combining biological material development and diagnostic reagent manufacturing. \n \nHighlights of the transaction\n \n· Egens will purchase RMB20m (approximately US$3m) of new shares in Adaltis, equivalent to approximately 5.5% of Adaltis' enlarged share capital, valuing Adaltis at approximately US$58m\n· Egens has been granted an option to purchase a further 10%, which will be exercisable for 90 days after the approval of either Adaltis' 2016 or 2017 financial statements. The purchase price is expected to be based on a valuation of Adaltis at 5.5 times turnover\n· Egens has deposited a non-refundable €200,000 with BATM to guarantee the execution of the deal within 90 days \n· On the establishment of Adaltis Bio Med Company (\"ABC\"), a joint venture between Adaltis and Egens, in February 2014, Adaltis received a 40% interest in ABC with the balance of 60% interest held by Egens in consideration of its US$1m investment into ABC. As part of this transaction, Egens is to make a further investment, by way of a shareholder loan, to ABC of US$1.5m. Following this investment, Adaltis' interest in ABC will remain at 40%\nABC was established to provide Chinese customers with a multi-item imported diagnostic reagent product service for instruments and reagents. \n \nBATM is pleased to announce that ABC has signed its first major distribution agreement with Sino Pharm - a prominent Chinese medical and healthcare group - to distribute Adaltis HCV (Hepatitis C) nationwide. China is the world's largest market for Hepatitis. BATM's diagnostics business is fo...