TPG, Fosun target Chindex gets better buyout offer

The new bidder is willing to pay $23 per share for all outstanding American Depository Shares, compared to the $19.50 per share offer made by the TPG consortium in February.

Chindex's independent committee has recognized the new offer as a superior proposal and the TPG consortium now has the right to revise its bid. Any proposal would still have to be approved by public shareholders.

Chindex describes itself as an American health care company providing services in China through United Family Healthcare, a network of private primary care hospitals and affiliated ambulatory clinics.

The brand operates in Beijing, Shanghai, Tianjin and Guangzhou, and also provides medical equipment and products through Chindex Medical, a joint venture with Shanghai Fosun Pharmaceutical, an affiliate of Fosun Industrial.

The company reported a net loss of $6.1 million in 2013 compared to a profit of $4.1 million the previous year. A 17.7% increase in revenue to $179.4 million over the 12-month period was more than offset by rising wage costs.

The TPG consortium intends to finance its offer through cash from TPG, a combination of cash and equity from Fosun Pharma, and equity contributed by CEO Roberta Lipson and other management members. Post-transaction, TPG Asia VI would control 48.14% of Chindex, Fosun Industrial would hold 48.65%, and CEO Roberta Lipson would have 3.21%.

Lipson, an American who moved to China in the late 1970s and set up the business with Elyse Beth Silverberg in 1981, would remain CEO under the TPG consortium's proposal.

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• Topics
• Buyouts
• Healthcare
• Greater China
• buyout
• healthcare
• TPG Capital
• China
• Fosun Group