1st Aug 2014 10:29
LONDON (Alliance News) - Medilink-Global UK Ltd said Friday that it has sold a 51% interest in its loss-making subsidiary Medilink (Beijing) TPA Services Co Ltd to Selfdoctor (Beijing) Technology Co Ltd for a nominal consideration of CNY10.00.
Medilink-Global will retain a 49% interest in the subsidiary. The company said that it believes having a local partner could add strategic value to the business.
The subsidiary posted a net loss of CNY1.6 million on revenue of CNY7.3 million in 2013.
Under an agreement, Selfdoctor will provide financial support for Medilink China for no less than USD1.0 million and up to USD2.0 million to be used as working capital.
Medilink China's president Sa Ren is also a director and 51% shareholder of Selfdoctor, meaning that the sale constitutes a related part transaction under AIM rules.
"We believe that entering into this strategic partnership with Selfdoctor will give the Company the greatest opportunity to realise value from our Chinese operations," said Chief Executive of Medilink-Global Shia Kok Fat in a statement.
Shares in Medilink-Global were untraded Friday, quoted at 3.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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