Medilink-Global UK Limited Divestment of stake in Medilink China (8214Z)

TIDMMEDI

RNS Number : 8214Z

Medilink-Global UK Limited

17 March 2017

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

17 March 2017

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 Medilink-Global (Asia) Pte Ltd, a wholly owned subsidiary of the Group, entered into an agreement with Selfdoctor (Beijing) Technology Co., Ltd ("Selfdoctor") on 16 March 2017 for the sale of the Group's remaining 49% interest in its associate entity, Medilink (Beijing) TPA Services Co., Ltd ("Medilink China") to Selfdoctor for a total consideration of US$300,000 in cash (c. GBP242,100) (the "Divestment").

The consideration is payable by Selfdoctor in full within five business days of the execution of the agreement with Selfdoctor. Selfdoctor acquired the 51% of Medilink China not currently owned by the Company from Medilink-Global in August 2014. The Divestment does not require approval or consent from the local authorities in China. Completion of the Divestment remains conditional on receipt of the cash consideration from Selfdoctor.

Medilink China is currently loss making and the directors of Medilink-Global do not consider that Medilink China will be profitable in the near future. The directors therefore consider that it is in the best interests of the Company to undertake the Divestment in order to provide additional working capital to the Group.

For the year ended 31 December 2015, Medilink China had a turnover of CNY8.919 million (c. GBP1.05 million) and recorded a net loss of CNY1.524 million (c. GBP0.18 million). The book value of Medilink China in the Company's accounts for the year ended 31 December 2015 was zero.

Selfdoctor exploits digital information and communication technology to build comprehensive healthcare management services for both individuals and organisations. Selfdoctor has successfully participated in and contributed to a number of national research projects concerning China's medical and healthcare information technology.

Shia Kok Fat, the Chief Executive of Medilink-Global, commented "The cash proceeds from the Divestment will be used to provide additional working capital for the Group and to enable the Group to meet certain short term financial obligations. Following completion of this Divestment, Medilink-Global shall focus its business in the South-East Asia region, in particular the Group's core business in Malaysia."

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

END

MSCFDLFFDXFXBBV

(END) Dow Jones Newswires

March 17, 2017 07:40 ET (11:40 GMT)

Medilink (LSE:MEDI)
Historical Stock Chart
From Apr 2024 to May 2024