Vincent Medical Holdings Limited (SEHK:1612) entered into a memorandum of understanding to acquire minority stake in Vincent Medical (Dongguan) Mfg. Co. LTD (VMDG) and Vincent Medical Manufacturing Co., Limited (VMHK) from Bayer Medical Care Inc for HKD 67.3 million on August 25, 2020. Vincent Medical Holdings Limited entered into a share transfer agreement to acquire remaining stake in Vincent Medical (Dongguan) Mfg. Co. LTD and Vincent Medical Manufacturing Co., Limited from Bayer Medical Care Inc on October 30, 2020. Vincent Medical Holdings Limited and Bayer Medical Care, Inc. agreed to negotiate in good faith and to enter into a definitive agreement within 14 calendar days in respect of the possible acquisition of 1.7 million shares i.e. 19.9% stake in Vincent Medical Manufacturing and 3.98% stake in Vincent Medical (Dongguan). Prior to the completion of the transaction, Vincent Medical Holdings held 80.1% stake in VMHK and VMHK held 96.02% stake in VMDG. Upon completion, Vincent Medical Holdings will indirectly hold 100% stake in VMHK and VMDG. The memorandum of understanding (MOU) shall take effect from date of MOU until earlier of definitive agreement date or any period decided by both the parties. VMHK reported revenues of HKD 390 million, net profit before tax of HKD 33.4 million and net profit after tax of HKD 31.1 million in the year ending on December 31, 2019. Ballas Capital acted as financial advisor to Vincent Medical Holdings Limited. Vincent Medical Holdings Limited (SEHK:1612) completed the acquisition of a minority stake in Vincent Medical (Dongguan) Mfg. Co. LTD (VMDG) and Vincent Medical Manufacturing Co., Limited (VMHK) from Bayer Medical Care Inc on October 30, 2020. The consideration of HKD 67.3 million was paid by Vincent Medical Holdings to Bayer Medical Care in cash upon signing of the share transfer agreement. Vincent Medical Holdings financed the consideration by the internal financial resources and bank borrowings of the Group. VMHK and VMDG have become indirect wholly owned subsidiaries of Vincent Medical Holdings. The consideration implies a historic price-to-earnings ratio of 10.9 times based on the audited net profit of VMHK for the year ended December 31, 2019. Shareholders and Board of Vincent Medical Holdings approved the deal. The acquisition is considered to be accretive to the value of Vincent Medical Holdings.