Suzhou Basecare Medical Corporation Limited (SEHK:2170) entered into an agreement to acquire BMX Holdco Pte. Ltd. from individual investors and funds for approximately CNY 280 million on May 14, 2023. As per agreement, The consideration amount of CNY 27.8 million will pay on or before five business days after the execution date, CNY 222.6 will pay on completion and CNY 27.8 million to be settled on the completion date.

The Consideration will be settled by cash and will be funded by the Net Proceeds raised( annual report published on April 25, 2023 approximately CNY 250.2 million) in the Global Offering, internal financial resources and loan from third party financial institutions. Upon completion of the acquisition, BMX Holdco will become a wholly owned subsidiary of Suzhou Basecare Medical. BMX Holdco has reported revenue of CNY 91.2 million, total assets of CNY 240.3 million and net loss of CNY 52 million on December 31, 2022.

The transaction is subject to certain conditions: certain counterparties of BMX Holdco giving their written approval to the Acquisition and waiving any rights to prevent the acquisition, a collaboration agreement of BMX Holdco having been amended to be on terms reasonably satisfactory to Suzhou Basecare Medical, deeds of amendment for amending each of an IP assignment and licence deed, a shared supply agreement and a transitional services agreement having been duly executed, Sellers providing written evidence satisfactory to Suzhou Basecare Medical that certain key managements of BMX Holdco have given non-compete undertakings or are otherwise subject to non-compete obligations and The registration with SAFE or its designated commercial banks for the payments contemplated under the Share Sale Agreement has been completed, and an overseas direct investment foreign exchange registration certificate (or its equivalent) has been issued by SAFE. King & Wood Mallesons, China acted as legal advisor to Suzhou Basecare Medical Corporation Limited.