Blue Sail Medical Plans to Issue RMB 3.144 Billion Convertible Bonds to Acquire NVT and Other Companies

Original Title:Bluesail MedicalPlan to Issue RMB 3.144 Billion in Convertible Bonds to Acquire NVT and Other Companies Source: Neutral

Business Daily, Jinan Report (Reporter Huang Shougeng): On September 24, Bluesail Medical (002382) disclosed its refinancing plan, proposing a public issuance of convertible corporate bonds worth RMB 3.144 billion to fund the acquisition of interventional aortic valve company New Valve Technology (hereinafter referred to as “NVT”), the acquisition of Wuhan Bikel Salvage Supplies Co., Ltd., and other projects.

According to the announcement, Bluesail Medical plans to issue convertible bonds worth RMB 3.144 billion, of which approximately RMB 1.391 billion will be used to acquire 100% equity interest in the Swiss company “NVT” and make additional capital contributions; approximately RMB 437 million will be used to acquire a 6.63% minority stake in CBCH II; approximately RMB 286 million will be used to acquire 100% equity interest in Wuhan Bikel; and the remaining proceeds will be used for expanding protective glove production capacity, repaying bank loans, and supplementing working capital.

It is understood that “NVT,” the target of the proposed high-priced acquisition, is a Swiss company specializing in the research and development, production, and sales of interventional valve products for structural heart disease. As of June 30 this year, its operating revenue amounted to RMB 22 million, net assets stood at negative RMB 231 million, and net profit was negative RMB 24 million.

Bluesail Medical stated that NVT’s flagship product is the Alle-graTM transcatheter aortic valve replacement (TAVR) implant, primarily indicated for the treatment of aortic valve diseases. Compared with conventional therapies, it offers multiple advantages, including avoidance of thoracotomy, minimal invasiveness, rapid recovery, favorable patient prognosis, and low complication rates. This transaction will enable the company to acquire a scarce asset in the global interventional heart valve sector and facilitate access to domestically leading high-end products and core technologies.

However, analyses have pointed out that in the foreign market, medical device giants such as Edwards, Medtronic, and Boston Scientific already have similar TAVR systems marketed and sold in Europe. Domestically, several companies have already obtained approval for their TAVR products, while many others are accelerating their applications. Competition in both domestic and international markets is becoming increasingly intense.

The acquisition of Wuhan Bikel represents an expansion within the company's traditional protective products segment. According to available information, Wuhan Bikel is a manufacturer of vehicle-mounted first aid kits, with its main products including emergency protective first aid kits and bags, various emergency rescue products, and disposable health protective supplies.

Since acquiring Biosensors International for nearly RMB 6 billion in 2018, Bluesail Medical has continued its relentless M&A expansion, particularly in the cardiovascular and cerebrovascular sectors. In June this year, several executives of Bluesail Medical acquired a 10.16% equity stake in Suzhou Tongxin Medical Device Co., Ltd., a company specializing in the research, development, and sales of artificial heart medical devices.

(Editor: Li Xianjie)