China’s CICC Capital to invest up to $285m in Concord Medical subsidiary

Medical equipment in an operating theatre

China’s CICC Capital has committed to invest up to $285 million in a subsidiary of specialty hospital management solutions provider Concord Medical Services Holdings, according to an announcement.

Firms backed by CICC Capital will invest RMB 1.5-1.8 billion ($237-285 million) in Beijing Meizhong Jiahe Hospital Management in return for a stake of 37.5-41.9 per cent, a Concord Medical statement said.

Meizhong Jiahe manages and operates a network of independent specialty cancer hospitals in Beijing, Shanghai and Guangzhou. It had last announced raising RMB141.67 million through two rounds of private placement of additional shares in January 2017.

“This strategic investment (by CICC Capital) will provide strong financial support for Meizhong Jiahe and its operations in China,” said Dr Jianyu Yang, chairman and chief executive officer of Concord Medical.

In 2016, Yang had submitted a take-private offer for Concord Medical, along with Morgancreek Investment Holdings and Blue Ocean Management. The non-binding offer was withdrawn in November last year.

Concord Medical operates a large network of radiotherapy and diagnostic imaging centres in China. As of June 30, 2017, it operated 60 centres with 41 hospital partners across 34 cities and 19 provinces in China. In 2015, the NYSE-listed firm expanded its business to Singapore by acquiring Fortis Surgical Hospital, a hospital under Fortis Healthcare Ltd, for $39.8 million. The hospital was later renamed as Concord Cancer Hospital.

Founded in 2014, CICC Capital is a wholly-owned subsidiary of investment banking major China International Capital Corporation Limited.

Also Read:

Singapore: CMIG picks 51% stake in The Sloane Clinic, Asia Pacific Medical exits

China: Carlyle to exit Concord Medical as founder takes company private

China: Concord Medical-Zhongrong International establish $150m healthcare fund

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.