In an acquisition between two firms controlled by Chinese private equity firm Hony Capital, Hong Kong-listed Hospital Corporation of China Ltd (HCC) has entered into a share purchase agreement to buy Oriental Tally Holdings Ltd for RMB630 million ($98.3 million) via convertible bonds, as per its stock market filing.
Upon completion of the transaction, Oriental Tally will become a wholly-owned subsidiary of HCC. The latter is an investment holding company and owns two hospitals – Shanghai Fuhua Hospital and Shanghai Yangsi Hospital in China.
HCC is 70.19 per cent owned by Vanguard Glory, a subsidiary of Hony Fund V by Chinese private equity firm Hony Capital. The firm is backed by Legend Holdings. Meanwhile, Oriental Tally is managed by Hony Capital Fund VIII GP (Cayman) Limited. Both Hony Capital Fund V GP Limited and Hony Capital Fund VIII GP (Cayman) Limited are investment management companies of Hony Capital, as per the filing.
Oriental Tally currently owns 75 per cent in Guangsha Medical, which is one of the founders of Jinhua Hospital, Dongyang Hospital and Yongkang Hospital, and manages Jinhua Hospital.
Founded in 2003, Hony Capital focuses on buyouts and currently has $10 billion under its management. It has made over 100 investments in companies of various sectors including pharma and healthcare, media and entertainment, consumer products, food and beverage, as well as machinery and equipment manufacturing.
HCC was established in 2014 as Hony Capital’s investment and operation management platform.