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Hong Kong, Aug 3, 2009 - (ACN Newswire) - Global Resources Development (Holding) Limited ("Global Resources" or "the Group", Stock Code: 8116) intends to acquire 100% of Wealthy China Group Limited ("Wealthy China") which holds a 100% in Beijing Upway Science & Technology Development Co. Ltd ("Upway") and 60% interest in China Chief Medical Standards Database Co. Ltd.. The Total investment by Global Resources will be approximately $498 million which will provide entry into China's hospital information technology market. The total acquisition will be transacted by the issuance of convertible bonds with the initial conversion price of HK$0.168 per share. The acquisition agreement between Global Resources and the vendors was entered into on 24 July.
Commenting on the agreement, Mr. Stephen Frostick, Chairman of Global Resources said, "Our agreement with Wealthy China is a significant step in implementing our strategic interest in the health information technology business in China. The health information market in China is projected to reach RMB 246 billion within 5 years. This, coupled with the central government's medical reform plan which in part prescribes the upgrade of medical and clinical data application systems, will further broaden our Group's earnings base, and put us in a strong position to capitalize on emerging opportunities in China's health information technology market."
The PRC government's medical reform plan referenced by Global Resources' chairman, calls for the expenditure of RMB 850 billion by 2011 to provide basic medical security to all people living in urban and rural areas. The government also plans to build hospitals and improve medical services at the county level and in remote areas. Emphasis is being placed on reforming state-run hospitals by strengthening their administration, operation and supervision, inclusive will be a system to allow both urban and rural residents to use a universal healthcare account by 2011.
"The prospects of providing information technology services to PRC hospitals and medical institutions for standardization or medical records, information and management are extremely promising. Out patient services and admission services currently amount to 1.8 billion and 74 million person-time per year. This proposed acquisition provides Global Resources the advantage of participation in this robust industry, and it enables us to strategically diversify into new areas of high growth potential." added Mr. Frostick.
About Global Resources Development (Holding) Limited
Global Resources Development (Holding) Limited is principally engaged in production and sales of automobile parts and accessories, mining of mineral resources and production and sales of ferro-silicon and radio trunking systems integration. Supported by the central government's medical reform plan, the Group recently diversified its core business structure into the healthcare information technology sector in the PRC.
Contact: Porda International (Finance) P.R. Group
Ms. Louisa Ching
Tel: 3150-6762
Email: louisa.ching@pordafinance.com.hk
Ms. Alman Loong
Tel: 3150-6731
Email: alman.loong@pordafinance.com.hk
Ms. Kate Chan
Tel: 3150-6752
Email: kate.chan@pordafinace.com.hk
Fax: 3150 6728
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