Aug 13 (Reuters) - China-headquartered medical device

maker Kangji Medical said on Tuesday it had received a

go-private proposal from a consortium backed by investment firm

TPG, valuing the firm at HK$11.17 billion ($1.42

billion).

TPG, together with a wholly-owned unit under Qatar

Investment Authority and Kangji Medical's chairman Zhong Ming,

are offering HK$9.25 a share to buy out Kangji Medical.

The offer price represents a 21.7% premium over the closing

price on June 30, the last undisturbed date, and a 47.3% premium

over the 360-trading day average price up to and including the

undisturbed date, the statement said.

The joint statement did not explain why they determined June

30 was the last undisturbed trading date. Kangji's shares surged

on July 2 and July 3, which indicated speculative trading, and

the stock was put on a trading halt on July 18.

The offer price presents a 9.9% premium over Kangji's

closing price on Tuesday at HK$8.42 apiece.

The shares opened 5.4% higher on Wednesday but have since

slipped to trade roughly unchanged.

There were limited benefits for Kangji to remain listed

following the long-term underperformance of its share price and

subdued trading liquidity that hurt its fundraising ability, and

given listing costs, the statement said.

The company's future growth requires significant investment

which could weigh on its financial performance in the near term

and going private would alleviate that pressure, it said.

Founded in 2004 and based in Hangzhou, Kangji designs and

makes minimally invasive surgical instruments, serving hospitals

and distributors across China and overseas.

TPG first invested in Kangji in 2017 for a minority stake

and stayed on as an investor after its 2020 initial public

offering.

If the deal is approved, the company will delist from the

Hong Kong Stock Exchange and become a unit of the buying firm.

Kangji is controlled by its chairman and his spouse who

together hold 52.98%. Following the privatisation, the couple

will remain the largest shareholders in the company with a

reduced 40% stake, according to the statement.

The deal will be done via Knight Bidco Ltd, an entity

jointly owned by the investors, according to a joint statement

by the company and the investors.

($1 = 7.8495 Hong Kong dollars)