Medilink-Global UK Limited Divestment of stake in Medilink China (0267O)

TIDMMEDI

RNS Number : 0267O

Medilink-Global UK Limited

01 August 2014

MEDILINK-GLOBAL UK LIMITED

("Medilink-Global", the "Company" or the "Group")

Divestment of stake in Medilink China

Medilink-Global UK Limited (AIM: MEDI), the electronic health card network service provider, announces that the Company has today divested a 51% interest in the Company's subsidiary, Medilink (Beijing) TPA Services Co Ltd ("Medilink China") to Selfdoctor (Beijing) Technology Co Ltd ("Selfdoctor") for a nominal consideration of CNY10.00 (approximately GBP1.00) (the "Divestment"). The Company retains a 49% interest in Medilink China.

Medilink China is currently loss making and the directors of Medilink-Global believe that having a strategic local partner could add strategic value to the business. For the year ended 31 December 2013 Medilink China had a turnover of CNY 7.29 million (c. GBP700,000) and recorded a net loss of CNY1.59 million (c. GBP150,000). Under the term of the Sale and Purchase Agreement entered into between the Company and Selfdoctor, Selfdoctor has undertaken to provide financial support to Medilink China of an amount not less than US$1,000,000 and up to US$2,000,000. This funding will be used as working capital to expand Medilink China's business activities.

Saren is an executive director and president of Medilink China and is also a director and 51% shareholder of Selfdoctor. Therefore the Divestment constitutes a related party transaction under the AIM Rules for Companies. The directors of Medilink-Global, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider the terms of the Divestment to be fair and reasonable insofar as the Company's shareholders are concerned.

Shia Kok Fat, the Chief Executive of Medilink-Global, commented "We believe that entering into this strategic partnership with Selfdoctor will give the Company the greatest opportunity to realise value from our Chinese operations. Having a local Chinese partner will be a strategic advantage to Medilink China to seek new opportunities in the Chinese market."

About Selfdoctor

Selfdoctor exploits digital information and communication technology to build comprehensive healthcare management services for both individuals and organizations. Selfdoctor had successfully participated in and contributed to many national research projects concerning China's medical and healthcare information technology and had also gained recognition by the relevant authorities and its member.

Selfdoctor's unique healthcare management services work as the platform for electronic health records; it captures information like daily living habits, physical and mental health status evaluation; remote health monitoring; early warning of high-risk diseases and immediate care services. Effective management of healthcare leads to significant reduction in the prevalence of common diseases, reducing medical treatment costs and lowering insurance loss ratio. Selfdoctor creates valuable services for medical institutions, insurance companies, reinsurance companies, business groups and individual in the areas of human sciences, life care, disease prevention, health insurance, medical equipments and other aspects of integrated healthcare business solutions.

With the rapid expansion and popularity of mobile Internet market, in addition to the traditional internet platform, Selfdoctor has also evolved and entered the mobile Internet market to provide easy access to healthcare information via mobile phones. Selfdoctor has the ability and readiness to support new guidance of China medical reform Act to cooperate with medical institutions and service provider to develop strong healthcare management service to the public population.

For further information contact:

 
 MediLink-Global UK Limited        Tel: + 603 2296 3028 
  Shia Kok Fat, Chief Executive 
  Officer 
  www.medilink-global.com 
 Allenby Capital Limited           Tel: +44 (0)20 3328 5656 
  (Nominated Adviser and Broker) 
  Nick Athanas, James Reeve

This information is provided by RNS

The company news service from the London Stock Exchange

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