MicroPort CardioFlow Medtech (HKG:2160) agreed to merge with MicroPort Cardiac Rhythm Management in a deal valued at $680 million, according to a Hong Kong bourse filing Monday.

Shares of the medical company gained over 3% in morning trade Tuesday.

Under the proposal, MicroPort Scientific's (HKG:0853) CRM business under its 50.13%-owned MicroPort Cardiac Rhythm Management subsidiary will be combined with MicroPort CardioFlow, which oversees the group's structural heart disease business.

MicroPort CardioFlow said it would acquire the business via the issue of 3,953,847,407 shares of the company priced at HK$1.35 apiece.

The shares represent 164% of the company's issued share capital and 62% on an enlarged basis.

MicroPort Scientific is a controlling shareholder of MicroPort CardioFlow and owns 46.12% of the business.

Its shares were up 6% in morning trade Tuesday.