TPG, Fosun Back Chindex $369M Go-Private Deal

NASDAQ-listed Chindex International, Inc., the operator of the United Family hospitals in China, says the company has entered into an agreement with a group of investors to take the company private in a US$369 million deal.

The buyers include TPG Capital, Shanghai Fosun Pharmaceutical (Group) Co., Ltd., as well as Chindex’s founder and CEO, Roberta Lipson.

The buyers will acquire all of the outstanding shares of the Maryland-based Chindex’s stock for US$19.50 per share in cash.

The price represents a 14% premium over the company’s current market price, and a 17% premium over the volume weighted average trading price for the last 30 days.

The transaction will be financed through cash contributed by TPG, a combination of cash and shares contributed by Fosun, as well as stocks held by Roberta Lipson and other management members.

The deal has a "go-shop" clause through April 3, and the company expects the deal to close in the second half of this year.

"This is an opportunity for our unaffiliated stockholders to recognize a substantial return on their investment in Chindex despite the low liquidity of our shares in the equity market," says Kenneth A. Nilsson, chairman of Chindex.

"Chindex has encountered limitations on its ability to unlock projected value without substantial capital expenditures and funding currently unavailable to the company," he adds.

Last November, Warburg Pincus led a US$100 million investment in Beijing-based Amcare Women’s & Children’s Hospital, a competitor of United Family hospitals.

Last month, Sequoia Capital invested several hundred million RMB in Chengdu-based high-end women’s hospital operator Angel Group (China) Holding Company.

Last August, Baird Capital invested in Kedu Healthcare, a Chinese independent medical equipment service provider.

Caishen.Co - Primary Data for China Secondary Investment and Stock Markets
Caishen.Co - Primary Data for China Secondary Investment and Stock Markets