China Renji Medical (HKG:0648) announced that it has agreed to acquire the entire issued share capital of Brilliant Oasis Limited at HK$165 million, which will be satisfied entirely by the issue of a promissory note.

Expiring on 31 March 2015, the promissory note bears an interest rate of 4% per annum on the principal amount of HK$165 million.

As required as a condition precedent of the acquisition agreement, Brilliant Oasis is required to complete an reorganisation, such that Brilliant Oasis will own the entire interest in the design, development and sale of own branded bathroom equipment with patented technology business with (i) profit before tax of HK$5.4 million and HK$14.7 million for the year ended 31 December 2010 and 2011, respectively; (ii) profit after tax of HK$4 million and HK$11.1 million for the year ended 31 December 2010 and 2011, respectively; and (iii) net asset value of HK$15.2 million as at 31 December 2011.

With the growing popular of hydrotherapy as one of the general healthcare treatments, the management of the company considered that through the acquisition and the medical knowledge of the group, the group will be able to widen the applications of water therapies using jets and underwater massage and developing rehabilitation programs for better recovery of its patients and even for improvement in blood circulation for the elder.

Trading in the shares of China Renji Medical remains suspended until further notice.