Chindex To Merge With Fosun Pharma At Higher Share Price

Fosun Pharma and TPG increase their bid for Chindex from US$19.50 to US$24.00 per share.

AsianScientist (May 5, 2014) – Fosun Pharmaceutical (Group) Co., Ltd., a healthcare manufacturer in China, and private investment firm TPG have signed an amended merger agreement with the American healthcare provider Chindex.

In February 2014, the consortium comprising Fosun Pharma and TPG announced the acquisition of Chindex for US$369 million.

During the solicitation period, the Chindex’s transaction committee received an offer from a third party to privatize Chindex for a consideration of US$23.00 per share. As such, the present amendment concerns modifications to Fosun’s previously submitted privatization plan, increasing the consideration from US$19.50 to US$24.00 per share in cash.

Chindex focuses its business on the provision of high-end healthcare service in China and operates the first foreign-invested hospital in China, United Family Hospital. Since Fosun Pharma and Chindex started cooperation, United Family Healthcare has been expanding rapidly in China and has recorded significant business growth.

According to the announcement, the Chindex privatization plan is subject to the approval by the qualifying shareholders of Chindex and antitrust filing in China. Upon completion of the Proposed Privatization, the Company will indirectly hold up to 48.59 percent equity interest in Chindex (or Fosun Industrial is expected to increase its shareholding in Chindex to Up to 15.56 percent if it is to proceed with the Alternative Privatization Proposal), and Chindex will be delisted from NASDAQ.


Source: Fosun Pharma.

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