July 24, 2012
/PRNewswire-Asia/ -- Winner Medical Group Inc. (Nasdaq: WWIN) ("Winner Medical" or the "Company"), a leading
-based exporter and retailer of high-quality medical dressings and consumer products made from 100% cotton, today announced that the Company has entered into an Agreement and Plan of Merger (the "Merger Agreement") with Winner Holding Limited ("Parent"), a
exempted company with limited liability and indirectly wholly-owned by Mr.
, and Winner Acquisition, Inc., a
corporation and a wholly-owned, direct subsidiary of Parent ("Merger Sub"). Mr.
is the Company's president, chief executive officer, chairman of the board of directors and principal stockholder.
Subject to satisfaction of the Merger Agreement's terms and conditions, upon consummation of the merger, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly-owned subsidiary of Parent (the "Merger"). Pursuant to the Merger Agreement, each of the Company's shares of common stock issued and outstanding immediately prior to the effective time of the merger (the "Shares") will be converted into the right to receive
in cash without interest, except for (i) Shares owned by Parent and Merger Sub, including shares to be contributed to Parent by Mr.
(Mr. Li's wife) immediately prior to the effective time of the merger pursuant to a contribution agreement, dated as of
July 24, 2012
, among Parent, Glory Ray Holdings Limited, Mr.
, and (ii) Shares held by the Company as treasury stock, which will be cancelled and retired and cease to exist as of the effective time of the merger. The offer represents a premium of 32.3% percent over Winner Medical's closing price of
per share on
March 30, 2012
, the last trading day prior to the Company's announcement of its receipt of a "going-private" proposal.
Parent has a secured debt facility from DBS Bank Ltd.,
Branch, with which it is financing the transactions contemplated by the Merger Agreement.