BioLight agrees to sell stake in IOPtima
BioLight Life Sciences (TASE:BOLT) and other shareholders of its subsidiary, IOPtima, entered into a binding agreement for the investment and acquisition in stages of IOPtima by Chengdu Kanghong Pharmaceutical Group of China.
Under the accord, the investment in and acquisition of IOPtima will be executed in four separate stages. The first stage will include a direct investment by Chengdu into IOPtima of about $7-million (U.S) at a pre-money valuation of $30- million. The following stages will include an acquisition of the remaining IOPtima shares from all shareholders, including BioLight.
In the event that the transaction is fully executed, the gross consideration to BioLight is expected to range between about $23-million and $27.3-million.
BioLight has a 70% stake in IOPtima. Even before the deal is completed, Chengdu will become a distributor of IOPtima's products in China.
In a statement, BioLight CEO, Suzana Nahum Zilberberg, said China is an important target market for IOPtima. “Cooperation with Chengdu Kanghong, which is active in ophthalmology inside and outside China, is the first step in future cooperation," she added.