MicroPort CardioFlow plans major CRM business acquisition

MicroPort CardioFlow Medtech Corporation is set to acquire MicroPort Cardiac Rhythm Management Limited (Target Company) via a merger, with the Target Company becoming an indirect wholly-owned subsidiary. The transaction involves issuing 3,953,847,407 new ordinary shares at an issue price of HK$1.35 each, representing a total consideration of US$680 million. The merger is conditional on shareholder and regulatory approvals, including the Stock Exchange.

The acquisition is expected to significantly dilute existing shareholders by approximately 62% but aims to diversify revenue streams and expand product offerings to include CRM solutions alongside structural heart devices. The Target Group's financial performance showed revenues of US$220.6 million and a net loss of US$109.0 million for FY2024. For 1H2025, revenue was US$114.1 million with a net loss of US$41.6 million. The issue price reflects a premium over historical share prices, and the company’s cash resources are insufficient to fund a cash transaction, making the share issue a strategic choice to avoid immediate cash outflow.

An Extraordinary General Meeting (EGM) is scheduled for Monday, December 15, 2025, to approve the merger agreement and the share issuance. The EGM will be held at No. 501 Niudun Road, Zhangjiang Hi-Tech Park, Pudong New District, Shanghai, China. Shanghai MicroPort Limited, the controlling shareholder, will abstain from voting on relevant resolutions.