O’Melveny acts on Acotec Scientific’s partial offering

O’Melveny advises Acotec Scientific

O’Melveny advised China’s medical technology company, Acotec Scientific Holdings, on the voluntary partial offer for a majority stake of up to 65% by US-listed Boston Scientific Group, a wholly-owned subsidiary of Boston Scientific.

The deal is the largest acquisition of a Chinese medical technology company by a multinational since 2014.

Partners Geng Ke, Zhu Ke and Alan Bao, and counsel Liu Wei led the legal team.

This transaction was valued at HKD4.07 billion (USD520 million), priced per share at HKD20, a 31.6% premium to the closing price of the previous trading day at the time of the announcement.

In 2021, many biopharmaceutical companies were listed in Hong Kong under the new Chapter 18A of the Listing Rules, including Acotec Scientific.

However, due to geopolitical tensions, and the pandemic prevention and control measures last year, prices of Hong Kong’s stock remained depressed.

As the first M&A deal by a Chapter 18A listed company, this transaction provides a precedent for similar listed firms to reshape their valuations by acquisition.