Lifetech Scientific Acquires 96.46% Stake in Starway Medical for RMB 1.873 Billion; Hillhouse Capital Poised to Become Largest Shareholder

May 23, 2026 12:23 CST Updated 12:23

LifeTech

Suppliers of Congenital Heart Defect Occluders

Starway Medical

Research and Development, Production of Cardiovascular Interventional Devices

On May 22, Lifetech Scientific (Shenzhen) Co., LTD announced at 18.7331 billion yuan ($274 million)AcquisitionApproximately 96.46% equity of Starway Medical Co. Ltd.Starway Medical Co. LtdBecomeLifetech ScientificNon-wholly-owned subsidiary.Equivalent to Lifetech Scientific’s agreed valuation of approximately RMB 1.942 billion. This amount was determined by referencing (among other things) Starway Medical's post-tax net profit of approximately RMB 108 million for the fiscal year ending December 31, 2025 (excluding share-based compensation expenses for that fiscal year), applying an 18-times price-to-earnings ratio. The amount will be converted into US dollars based on the central parity rate of the US dollar against the RMB published by the China Foreign Exchange Trade System on the date of the acquisition agreement.

The consideration will be paid by the Company to the Seller through the issuance of convertible bonds at the closing. The Company is not required to pay any cash consideration. The issuance of convertible bonds and the allotment and issuance of conversion shares are subject to obtaining special authorization at an extraordinary general meeting of shareholders. According to the framework agreement, both the Company and the Seller must each use reasonable commercial efforts to enter into a purchase agreement for the transaction on or before June 5, 2026.The essence is that the acquired party holds convertible bonds. This marks the second investment by Hillhouse Capital in Lifetech Scientific (Shenzhen) Co., LTD within six years, following its strategic investment in 2021. Hillhouse Capital could potentially become the largest shareholder of Lifetech Scientific.

The implied adjusted P/E ratio of 18.0 times represents a discount of approximately 20.4% compared to the average adjusted P/E ratio of 22.6 times for comparable companies, and a discount of approximately 21.8% compared to the median adjusted P/E ratio of 23.0 times.

The Seller is a limited liability investment holding company incorporated in Hong Kong, wholly owned by AUT-VII Holdings. The sole shareholder of AUT-VII Holdings is AUT-II Holdings Limited, which is wholly owned by Hillhouse Investment Management V, L.P. (Hillhouse Capital).

2023Lifetech Scientific sold approximately 22.48% of its shares in Starway Medical Co. Ltd for 500 million yuan (with an overall valuation of approximately 2.248 billion yuan). The buyer is Hillhouse Capital's subsidiary.Shanghai Lingqie Medical Technology.

Starway Medical is a limited liability company established in 2002 under Chinese law. As a medical device company, Starway Medical is primarily engaged in the research, development, manufacturing, and sales of vascular interventional medical devices. Starway Medical's products are mainly used for treating congenital heart defects and preventing cardioembolic stroke. In 2003, Starway Medical launched one of the first domestically produced congenital heart disease occluders in China, and in 2009, introduced China’s first patent foramen ovale (PFO) occluder product.

Lifetech Scientific (Shenzhen) Co., LTD. is mainly engaged in the development, manufacturing, and sales of interventional medical devices, focusing on cardiovascular and peripheral vascular diseases. The board of directors has been actively exploring opportunities to enhance the group's product portfolio and technical capabilities, and to improve the group's ability to provide innovative solutions to patients and healthcare providers in both the Chinese and international markets.

Starway Medical Co. Ltd mainly engages in the research, development, manufacturing, and sales of vascular interventional medical devices, possessing competitive advantages in proprietary technology, market access, and R&D capabilities. The board believes that the acquisition of Starway Medical aligns with...Lifetech ScientificThe overall development strategy, and will forLifetech ScientificBring LongDistant Benefits.Starway Medical Main ProductsInterventional medical devices for congenital heart disease, including Patent Foramen Ovale (PFO) occluders, Ventricular Septal Defect (VSD) occluders, Patent Ductus Arteriosus (PDA) occluders, and Atrial Septal Defect (ASD) occluders.

Follow the official account below to see the world!