Hillhouse leads $512m investment in MicroPort’s surgical robotics unit

Residential and commercial buildings are seen from Victoria Peak in Hong Kong, China, on Monday, Sept. 11, 2017. Photographer: Billy H.C. Kwok/Bloomberg Photo by Bloomberg

A consortium led by Asia-focused private equity powerhouse Hillhouse Capital has invested 3.5 billion yuan ($512 million) in MicroPort MedBot, the surgical robotic solution unit of medical device developer MicroPort.

The investment consists of three tranches.

In the first tranch, the parent company will transfer 7.14 per cent of the registered capital in MicroPort MedBot to the investors for 1.5 billion yuan ($219 million). Next, asset manager Shanghai Changlong, an existing shareholder in MicroPort MedBot, will sell 2.38 per cent of the firm’s registered capital to the same investors for 500 million yuan ($73 million). In the final tranch, the investor consortium will contribute an additional 1.5 billion yuan to the subsidiary, MicroPort said in a filing to the Hong Kong Stock Exchange (HKEX) on September 1.

Besides Hillhouse, the consortium includes Chinese alternative asset manager CPE; Biolink Capital, which mainly makes equity investments in the medical sector; Grand Flight Investment, owned by Hong Kong-listed financial services institution Far East Horizon; and Guangzhou-based fund manager E Fund.

“The surgical robotic system has major strategic significance with respect to the development of remote, precise, minimally invasive, customised, and intelligent procedures,” said Martin Sun, chairman of MicroPort MedBot, in a statement. “This round of financing will bring necessary financial support for the steady listing, large-scale industrialisation, and marketing of the company’s surgical robot solutions,” he added.

Upon completion of the transactions, MicroPort MedBot’s post-money valuation will reach around 22.5 billion yuan ($3.29 billion). MicroPort’s stake in the subsidiary will fall from almost 64.76 per cent to 53.77 per cent.

Founded in 2014, MicroPort MedBot develops intelligent surgical robotic systems and solutions. Its current business covers five segments, including endoscope, orthopaedics, vascular intervention, natural orifice, and percutaneous puncture.

The firm has three flagship systems that were gained entries into the “Green Channel” programme, for innovative medical devices, of China’s National Medical Products Administration (NMPA). It claims to have over 250 domestic and international patents.

The parent company focuses on the development, manufacturing, and marketing of high-end medical devices. It was established in 1998 and raised HK$1.54 billion ($199 million) in an initial public offering (IPO) in Hong Kong in 2010.

Bloomberg reported in March, citing sources, that MicroPort picked Citigroup Inc and JPMorgan Chase & Co to arrange a separate listing of its heart valve replacement business, MicroPort CardioFlow Medtech, in Hong Kong as early as this year. The unit had raised about $130 million in a pre-money valuation of $1.1 billion from investors including Hillhouse Capital, CPE, Lake Bleu Capital, and 3H Health Investment Fund I in April 2020.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.