Alibaba, Yunfeng-backed consortium seeks to acquire NASDAQ-listed iKang Healthcare

iKang runs 110 self-owned operating medical centres, covering 33 of China’s most affluent cities as of March 12, 2018. Photo: iKang website

China’s iKang Healthcare Group, a major provider of private preventive healthcare services, said a consortium led by Yunfeng and Alibaba Investment Ltd (Alibaba) has officially proposed to make the company private by acquiring all of its shares in an all-cash transaction.

In a statement, iKang Healthcare said its special committee of independent directors has received a proposal from the consortium for the acquisition of all of its outstanding Class A Common shares, Class C common shares, and American depository shares (ADS) for $20 per ADS or $40 per share.

“The Special Committee will carefully consider and evaluate, with the assistance of the Special Committee’s independent financial and legal advisors, the Yunfeng/Alibaba Proposal,” iKang said.

Additionally, iKang said the committee has received information that Yunfeng and Alibaba are in discussions with certain significant shareholders regarding their potential support for the Yunfeng/Alibaba Proposal and potential rollover arrangements in connection with the proposed transaction.

The latest development comes nearly two years after Yunfeng Capital joined a bidding war to take the NASDAQ-listed Chinese health check-up firm private, with an all-cash proposal.

Meinian Onehealth Healthcare Group and another consortium had earlier proposed to acquire iKang at a lower value than what the Yunfeng-Alibaba consortium is offering.

The Chinese healthcare firm, however, clarified that no decisions have been made with respect to the Yunfeng-Alibaba proposal.

“There can be no assurance that any agreement will be executed or that the Yunfeng-Alibaba proposal, any other potential proposal submitted to the Company or any other transaction will be approved or consummated,” the company said.

Covering 33 of China’s most affluent cities, iKang provides comprehensive and high-quality preventive healthcare solutions across China, including medical examination, disease screening, dental service and other value-added services.

Also Read:

China: iKang founder, Meinian withdraw take-private bids after Yunfeng Capital’s offer

China’s Ping An Ventures said to be raising up to $1.3b for healthcare funds