(EQS-News / 02/07/2015 / 21:14 UTC+8)

Yestar International Holdings Company Limited
(Stock code: 2393.HK)

Allotment and issuance of approximately 320 million Subscription Shares Raises approximately HK$960 million for the acquisition of medical consumable distribution network in Shanghai and other acquisitions Introduces healthcare specific investors as strategic shareholders
[2 July 2015 - Hong Kong] Yestar International Holdings Company Limited ("Yestar International" or the "Company" together with its subsidiaries, the "Group", stock code: 2393.HK) is pleased to announce that the Group has entered into Subscription Agreements with 18 subscribers (the "Subscribers") to allot and issue not more than 320,400,000 Subscription Shares at subscription price of HK3.00 for each share on 28 June 2015. The number of the Subscription Shares is equivalent to approximately 17.16% of the issued shares and 14.64% of the enlarged share capital. The aggregate gross proceeds will be HK$961,200,000 and the net proceeds will be HK$938,677,971, respectively. The Group intends to spend part of the net proceeds on the acquisition of medical consumable distribution network in Shanghai as published on 10 April 2015 and on possible future acquisitions. The net proceeds will also be used to increase general operating capital. The allotment and issuance will effectively broaden the Shareholders base and optimize the shareholders profile of the Company.
Lock-up Terms
Three of the Subscribers, namely, Vivo VII Galaxy Investment Limited ("Vivo"), Worldwide Healthcare Trust PLC and OrbiMed Global Healthcare Master Fund, L.P. ("OrbiMed") further undertake that they will not sell or dispose of their respective Subscription Shares within six months starting from the completion date of the subscription.


Mr. James Hartono, the Chairman of Yestar International, said, "We have successfully transformed into a high-end medical consumable player in the PRC after the acquisition of Jaingsu UNO Technology Development Company Limited in November 2014, in which we have successfully introduced the world's top-tier brands - Roche and Becton Dickinson . The Group has also entered into a share transfer agreement with an independent third party (the "Seller") on 10 April 2015. In this agreement, the Group acquired 70% of the entire equity interest of 5 medical equipment and consumable companies, namely Shanghai Emphasis Investment, Shanghai Jianchu Medical, Shanghai Chaolian Trading, Shanghai Haole Industrial and Shanghai Dingpei Industrial (collectively called the "Target Companies") with a total consideration of RMB910,000,000 (equivalent to approximately HK$1,155,700,000). The newly acquired Target Companies hold the distribution rights of Roche and another laboratory equipment brand, Thermo Fisher, in Shanghai where the medial system has been well developed whilst high-end medical services are in enormous demand. The Target Companies have also set up a sale network of substantial scale in Shanghai. This acquisition extends the Group's network to Shanghai, an area with high potential, in addition to our current direct sale and distribution networks in Jiangsu and Anhui, bringing new impetus to the development of medical equipment and consumable business of the Group. The Group, through this acquisition, became a leading distributor and business partner with Roche in China, which lays the foundation for our future market expansion and product portfolio enrichment.

Mr. James Hartono continued, "The demand for in vitro diagnostic consumables and equipment continues to grow with a high velocity along with the rapid aging population and raising awareness towards disease prevention screening. According to the Renub Research Analysis, the PRC's in vitro diagnostics market is expected to reach US$6,335.5 million by 2018, doubling the size in 2013. Through the successful transformation, Yestar International is moving to a new stage and taking the enormous development opportunities offered by China's medical market. This allotment and issuance has not only broadened our shareholders base but also introduced a number of strategic shareholders who are healthcare specific investors. With approximately US$15 billion in asset under management ("AUM"), OrbiMed, one of the Subscribers, is the largest investor specialized in healthcare business. , Another subscriber, Vivo VII Galaxy Investment Limited, is controlled by Vivo Ventures Fund VII, L.P which is an affiliate of Vivo Capital. With over US$1.7 billion AUM, Vivo Capital is a healthcare investment firm focusing on setting up high quality companies in the U.S. and China. The joining of the above strategic shareholders is a recognition of the Group's development strategies as well as a proof of our position in China's medical equipment and consumable market. Backing by the extensive network, the rich resources and entrenched experiences of the strategic shareholders in the medical field, Yestar will acquire more market shares in the PRC's medical market and make even bigger returns!"
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About Yestar International Holdings Company Limited The Group is one of the fast-growing medical equipment and consumable companies in the PRC, mainly focusing on medical imaging products and IVD products. The Group, also being the manufacturer of medical films for Fujifilm, distributes Roche Diagnostic (Roche) and Becton Dickinson (BD) branded IVD products in Jiangsu and Anhui provinces, the PRC. On 10 April 2015, the Group has entered into a share transfer agreement with an independent third party to acquire the distribution rights and network of Roche and a laboratory equipment brand, Thermo Fisher, in Shanghai. Being the sole processor and exclusive distributor of Fujifilm color photographic papers and industrial imaging products in the PRC, the Group also manufactures and sells dental films under the house brand "Yes!Star".

End of Press Release

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Document: http://n.equitystory.com/c/fncls.ssp?u=FAWGWDXGXX Document title: Yestar 2393.HK - Press Release Eng
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Key word(s): Financing

02/07/2015 UTC+8 Dissemination of a Press Release, transmitted by EQS TodayIR - a company of EQS Group AG.
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