Imaging Dynamics Company Ltd. closed a stake sale in its wholly owned Chinese unit Shanghai IDC Healthcare Co. for gross proceeds of 80 million yuan.

Under the financing, the company sold Beijing Sheng Zexin Technology Development Co., Beijing Xiangyuda Technology Co. and Shanghai FuLi Medical Technology LP 36.5 million, 30.5 million and 13 million Shanghai IDC common shares, respectively, for 1 yuan per share.

Beijing Sheng would own 36.5% stake in Shanghai IDC, Beijing Xiangyuda will have 30.5% and Shanghai FuLi will get 13%, with Imaging Dynamics owning the remaining 20% of the company.

As a result of the transaction, the unit's board composition is also expected to change.

The Calgary, Alberta-based medical technology company said the deal will allow its unit to compete better in China as recent policy changes require government hospitals to buy medical devices from locally controlled companies.

The deal will also provide Imaging Dynamics funds to explore strategic growth opportunities as well as help the unit to support its Chinese operations in the near term.

Imaging Dynamics added that the unit comprised about 80% of the company's revenue, which will be significantly reduced as a result of the deal.

As of May 11, US$1 was equivalent to 6.33 Chinese yuan.