Fangda acted as lead counsel to Midea Group Co., Ltd. (“Midea“, stock code: 000333.SZ) on its deal to acquire a controlling stake in Beijing Wandong Medical Technology Co., Ltd. (“Wandong Medical“, stock code: 600055.SH) for RMB2.3 billion. The transaction was signed and announced on February 2, 2021, the controlling shares were registered for transfer on May 6, 2021, and delivered on May 12, 2021
The transaction was implemented by means of negotiated transfer of A-shares. After the transaction, Midea Group became the controlling shareholder of Wandong Medical, and Mr. Xiangjian He, the actual controller of Midea Group, became the actual controller of Wandong Medical. In all, Midea Group acquired 29.09% of shares in Wandong Medical, which included: (1) 24.09% shares in aggregate from Wandong Medical’s former controlling shareholder Jiangsu Yuyue Technology Development Co., Ltd. and Mr. Guangming Wu, Wandong Medical’s former actual controller, and (2) 5% shares from Wandong Medical’s former second shareholder Mr. Rong Yu. As part of the deal, Yuyue Technology and Guangming Wu became, respectively, the controlling shareholder and actual controller of the A-stock listed company Jiangsu Yuyue Medical Equipment & Supply Co., Ltd. (stock code: 002223.SZ). Rong Yu has taken over as the actual controller of the A-stock listed company Meinian Onehealth Healthcare Holdings Co., Ltd. (stock code: 002044.SZ ).
Midea Group is an international technology company, and its business portfolio comprises five major divisions: smart home, electro-mechanical, HVAC & building technologies, robotics & automation, and digital innovation. Established in 1955, Wandong Medical is a renowned and leading supplier of X-ray generator and other medical imaging equipment, as well as delivering a medical imaging diagnostic service. It is a leading market player in the healthcare sector. Wanlicloud, a subsidiary of Wandong Medical, is a leading remote medical imaging big data service platform in China.
The Fangda team on this deal was led by corporate partners Silvia Gong and Shihua Wang, and the team members included Murphy Li, Viola Jiang, Minhong Cai, Jing Xu and Alaric Zhang. Fangda handled the legal due diligence, documentation and other transaction-related matters on this deal, assisted Midea Group in its due diligence investigation of Wandong Medical, and provided full-range of legal services, including developing the transaction structure, negotiation, information disclosure and corporate governance.