The LifeTech investment
Zylox-Tonbridge Medical Technology and GL Capital will jointly put about HK$1.482 billion into LifeTech Scientific, the companies said. The money goes in through GL Lighthouse Two Investment Limited, which will subscribe for newly issued LifeTech shares equal to about 16.7% of the enlarged share capital.
Lighthouse Two is to become LifeTech's largest single shareholder once the transaction completes. Zylox-Tonbridge will hold 60% of Lighthouse Two, through an investment of about HK$889 million.
GL Capital's Zylox-Tonbridge shares
In a related transaction, GL Capital will subscribe for 39.8 million newly issued Zylox-Tonbridge shares at HK$22 each, about 10.8% of that company's enlarged issued share capital. The subscription price is a 13.5% premium to the closing price on the announcement date and a 15.4% premium to the average closing price over the five preceding trading days, according to the announcement.
Zylox-Tonbridge said the proceeds will support potential future investments in LifeTech and international business development.
What the companies say it is for
The investment is expected to bring Zylox-Tonbridge's peripheral vascular and neurovascular businesses together with LifeTech's aortic and structural heart businesses, giving the pair a portfolio across four therapeutic areas. Zylox-Tonbridge also intends to pursue a potential merger with LifeTech, and the two investors may acquire further LifeTech shares to support closer collaboration.