logo
Share SHARE
FONT-SIZE Plus   Neg

Chindex Agrees To Be Taken Private By TPG And Fosun Pharma In $369 Mln Deal

Chindex International Inc. (CHDX) announced Monday that it has rached a definitive merger agreement with a buyer consortium of an affiliate of TPG, an affiliate of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., and Roberta Lipson, the CEO of the Company, in a transaction having an implied equity value of approximately $369 million.

As per the terms of the merger agreement, the Buyer Consortium will acquire all of the outstanding shares of Chindex's common stock for $19.50 per share in cash. This price represents an implied premium of approximately 14% over the current market price, 17% over the volume weighted average trading price for the last 30 days, and 86% over the closing share price since the formation of the Transaction Committee on December 26, 2012. The transaction will result in Chindex becoming a private company.

The agreement has been approved by the Company's Board upon the recommendation of the Board's Transaction Committee of independent and disinterested directors.

Roberta Lipson, a founder and the CEO of Chindex, who will remain as CEO and roll over substantially all of her equity in the transaction.

As per the terms of the agreement, there is a so-called "go-shop" period, during which the Company and its advisors are permitted to actively solicit and consider alternative proposals from third parties through April 3, 2014, plus a potential 15-day extension, and the Company management and Fosun are permitted to enter discussions with parties that make alternative proposals during that period.

Completion of the transaction is subject to certain conditions, including, among others, the approval by Chindex stockholders, the approval by a majority of Chindex disinterested stockholders, the approval by stockholders of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., the approval under Chinese antitrust laws, and other customary closing conditions.

The company said that the transaction will be financed through cash contributed by TPG, a combination of cash and equity contributed by Fosun and equity contributed by Roberta Lipson and other management members. The transaction is not subject to a financing condition. Assuming the satisfaction of conditions, the Company expects the transaction to close in the second half of the 2014 calendar year.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
A new study says that if Hillary Clinton is elected then her proposals will strengthen the U.S. economy and create millions of jobs. According to Moody's Analytics, Hillary Clinton's economic proposal would oversee a "somewhat stronger U.S. economy." The conclusion was reached after assessing her... Oil company Exxon Mobil Corp. on Friday reported a 59 percent fall in profit for the second quarter from last year, while Chevron Corp. reported a loss for the quarter, both on lower revenues. The results of both companies were impacted by the low crude oil and natural gas prices as well as weaker refining margins. Merck & Co Inc. (MRK) reported a second-quarter profit that climbed 75 percent from last year, while quarter sales rose 1 percent. The prior year result included foreign exchange losses of $715 million related to the devaluation of the company's net monetary assets in Venezuela. The company raised the bottom end of its full-year 2016 non-GAAP earnings per share outlook.
comments powered by Disqus
Follow RTT