BATM Advanced Communications Limited (LON:BVC) has received a boost with its Chinese unit Adaltis was valued at US$58mln as a result of a new equity investment by a local partner.
Adaltis, a manufacturer of medical devices, is getting a US$3mln (RMB20mln) injection from Egens Biotechnology in return for a 5.5% stake in the business – and the partner also gets an option to buy a further 10% at a later date.
The investment terms are the result of six months negotiation and Zvi Marom, BATM chief executive, says all parties agree that it has been done at a “very fair price”.
It comes as an Egens and Adaltis joint venture presses ahead with plans to distribute Hepatitis C diagnostic kits through China, one of the countries most afflicted by the infectious disease with an estimated 350,000 to 500,000 deaths every year.
“Nobody can ignore the Chinese market,” Marom said in an interview with Stocktube.
He highlights that medicines focussing on infants and infectious diseases are priorities for the Chinese government.
“They are pushing the medical sector, they are investing a lot of money and there is no doubt that if you want to be a global player, and this is our ambition, then you have to have the Chinese market,” he added.