In October 2012 Medtronic picked up a roughly 26% interest in LifeTech, acquiring a 19% equity stake for $46.6 million and another 7% in a $19.6 million convertible note purchase. The agreement called for LifeTech to develop a line of pacemakers and leads using its manufacturing plant in Shenzhen, with Medtronic supplying “certain technology, training and support” to bring the devices to market in the People’s Republic, the companies said at the time.
Although the Fridley, Minn.-based medical device giant will continue to contribute to the HeartTone pacemaker the duo is developing, it’s selling 22.4% of LifeTech to CEL and its remaining stake to the anonymous investor, LifeTech said.
“Following completion of the transaction, Medtronic will cease to have any interests in shares of the company and cease to be a substantial shareholder,” Hong Kong-based LifeTech said. “Upon the completion of transaction, the company will continue to maintain the strategic cooperation with Medtronic on HeartTone pacemaker. Furthermore, both Medtronic and the company will look for future opportunities to expand the strategic collaboration.
Its new minority owner is already deeply invested in healthcare, LifeTech added, noting CEL plays in the pharmaceutical, in vitro diagnostics, medical device and healthcare provider industries.
“The board is of the view that the resources of CEL will fully support the sustainable development of the group,” the company said.