Dongcheng, a pharmaceutical company listed on the A-share market (SZSE:002675), signed an agreement to acquire 100% of the outstanding shares of AMS in May 2017. The transaction values AMS at a valuation of RMB1.6 billion, which is equivalent to a FY2016 P/E multiple of 24.4x.
According to the agreement, SKR expects to receive a cash payment for 50% of its shareholding on completion of the transaction based on a valuation of RMB1.6 billion, and an additional cash payment for the remaining 50% shareholding at the fair market valuation of AMS based on FY2019’s audited financial statements.
Advanced Medical Systems Limited provides radiopharmaceuticals to hospitals and imaging centres for use in Positron Emission Tomography (“PET”) scanners and Positron Emission Tomography / Computed Tomography (“PET/CT”) scanners. The Company is the #1 player in China in the positron radiopharmaceutical industry and one of only two companies licensed to produce and sell Fluorodeoxy- glucose (F18-FDG), which is used in PET/CT scanners. AMS also distributes cyclotrons and provides maintenance services for nuclear medicine equipment.