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 The non-binding offer was withdrawn in November last year.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.