HONG KONG, Nov 27, 2023 - (ACN Newswire) - OrbusNeich Medical Group Holdings Ltd ("OrbusNeich", 6929.HK), a major global medical device manufacturer specializing in interventional devices for percutaneous coronary intervention (PCI) and percutaneous transluminal angioplasty (PTA) procedures, is pleased to announce that it has acquired 84% of the issued share capital of PT Revass Utama Medika ("PT Revass"), through its wholly-owned subsidiary on 27 November 2023. The initial estimated consideration for this transaction is US$15.12 million, and the actual consideration, which is expected to be in the range of US$10.08 million to US$20.16 million, will be determined based on the actual profit recorded by PT Revass in FY2023. The consideration for the acquisition will be funded from proceeds of the Group's global offering and cash generated from operations.
PT Revass is an Indonesian company specialising in distributing and selling cardiovascular intervention, neuro intervention, peripheral intervention and continuous renal replacement therapy products. Its profit after tax in FY2022 amounted to IDR14.3 billion (equivalent to approximately US$920,000). As of 30 June 2023, its unaudited net asset value was approximately IDR88.1 billion (equivalent to approximately US$5.7 million*). Upon completion of the acquisition, PT Revass will become an indirect non-wholly-owned subsidiary of the Group, and its financial results will be consolidated into the Group's financial statements.
Mr. David Chien, Chairman, Executive Director and Chief Executive Officer of OrbusNeich, said, "PT Revass has been engaged in the sales and distribution of medical devices in Indonesia for over 10 years. After years of hard work, it has established a strong sales network in the country, covering more than 200 cardiac catheterization laboratories, and is well known in the medical industry. With the acquisition of PT Revass, the Group will shift from a distribution model to a direct sales model in the Indonesian market. This will directly increase the Group's revenue and profitability and effectively accelerate our further penetration in this fast-growing economy with a huge population."
Mr Andriatno Martono, President Director of PT Revass, said, "We are honored to reach a sale and purchase agreement with OrbusNeich, the world's leading PCI and PTA interventional device manufacturer. OrbusNeich and PT Revass are committed to providing patients with high-quality medical equipment and treatments. Under the leadership of OrbusNeich, which has rich marketing experience in the international market and high-quality and innovative products, we will be able to introduce more high-quality vascular interventional medical devices to the Indonesian market and benefit more patients there."
Since introducing the first balloon product, Sapphire, to the Indonesian market in 2010, OrbusNeich is committed to increasing local market penetration by organizing education activities for doctors and continuously updating its product portfolio. In FY2022, the Indonesian market contributed to the Group US$3.1 million in revenue, representing a year-on-year increase of 29.6% and accounting for 2.2% of the total revenue. According to data from the World Bank, Indonesia's population reached 276 million in 2022, making it the fourth most populous country in the world. In addition, according to the World Health Organization, ischemic and hypertensive heart disease is the second leading cause of death in Indonesia. With steady economic growth, Indonesia's healthcare expenditure as a percentage of GDP has increased yearly. The number of cardiac catheterization laboratories for PCI procedures has also been increasing yearly and is expected to increase continuously. Therefore, the Group believes this transaction will be a sustainable growth driver for its future revenue and profit.
*At the rate of IDR10,000 to US$0.64
About PT Revass Utama Medika
Founded in 2010, PT Revass Utama Medika is a company that distributes and markets cardiology intervention medical devices. Initially, it began as an importer and distributor of stents and balloons from OrbusNeich. To encourage growth, PT Revass Utama Medika expanded its business by distributing other medical accessories as supporting devices for cardiology intervention. Moreover, the company created a large sales network spanning 30 major cities across the Indonesian archipelago. Consistent with its vision to be a trusted and leading business partner, PT Revass Utama Medika provides Indonesia with the highest quality cardiology intervention medical devices. Please visit the Company's official website: https://www.revassutamamedika.com/
About OrbusNeich Medical Group Holdings Limited
OrbusNeich is a major global medical device manufacturer specializing in interventional devices for percutaneous coronary intervention (PCI) and percutaneous transluminal angioplasty (PTA) procedures. Headquartered in Hong Kong, China, OrbusNeich sells its products in more than 70 countries and regions worldwide. It specializes in coronary stent products and is expanding into neurovascular intervention and structural heart disease. As of June 30 2023, OrbusNeich has more than 210 granted patents and published applications worldwide. Its in-house R&D team has over two decades of product development experience and has developed world-leading proprietary technologies. Please visit the Group's official website: https://orbusneich.com/
Topic: Merger & Acquisition
Source: OrbusNeich Medical Group Holdings Limited
Sectors: Healthcare & Pharm, MedTech
From the Asia Corporate News Network
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