MEDICAL device company Shenzhen Mindray Bio-Medical Electronics plans a 6.65 billion yuan (US$927 million) deal to gain control of APT Medical to expand in cardiovascular disease-related businesses.

A wholly owned unit of Mindray will buy a 21.12% stake in APT Medical from current shareholders, including funds linked to venture investment firm Qiming Venture, for 6.65 billion yuan, Mindray said Sunday.

The Mindray unit will become the controlling shareholder of APT Medical after the transaction, according to a Mindray statement.

APT Medical’s main products include catheters for use in electrophysiology, an area that involves measuring the electrical system of heart for abnormalities, and sheaths for use in invasive treatments for blockage in peripheral blood vessels.

The 21.12% stake purchase priced each APT Medical share at 471.12 yuan, a 30.67% premium to APT Medical’s last closing price of 360.53 yuan Friday.

It also involves the Mindray unit paying 1.3 million yuan for a 0.12% general partner interest in investment fund Zhuhai Tongsheng, which holds a 3.49% stake in APT Medical, with Mindray to hold a 99.88% limited partner interest in Zhuhai Tongsheng.

Combining all parts of the deal, the transaction values APT Medical at 30.2 billion yuan, a 25% premium to the closing price Friday.

The broader market for medical devices in electrophysiology and blood vessel interventional treatments in China is still dominated by foreign rivals such as Johnson & Johnson and Abbott Laboratories, APT Medical said in its 2023 half-year report in August. (SD-Agencies)