PE-backed Meinian Onehealth to list via reverse merger

According to a regulatory filing, Jiangsu Sanyou will acquire 100% of Meinian Onehealth through a combination of a share swap and new share issuance worth about RMB5.54 billion ($892 million). Rong Yu, chairman of Meinian Onehealth, will become the controlling shareholder of the merged entity.

Founded in 2004, Meinian offers general medical examinations, disease screening and services such as doctor referrals and traditional Chinese medical services to individual and corporate customers. As of December last year, it operated 94 check-up centers in 39 provinces.

The company has received several rounds of funding. In 2012, Carlyle paid about RMB230 million ($37 million) acquired a 13.5% stake in Meinian via Beijing Carlyle Investment Center, its joint venture renminbi fund with the Beijing municipal government.

In 2013, the company raised RMB300 million from Carlyle, Ping An Insurance and Cathay Capital. Then in December last year, ChinaEquity and GGV Capital's renminbi fund committed RMB76 million to Meinian, while Huatai Zijin Investment provided another RMB100 million last month.

Meinian has made several investments to scale up the business. In 2012, it acquired Shenzhen Regular Hospital Management Investment, a Guangdong-based medical clinics operator.

Two months ago, the company invested in industry rival Ciming Health Checkup Management Group. Financial terms were undisclosed but Ciming's founder remains the controlling shareholder of the company. CDH Investments and Tiantu Capital were both investors in Ciming. The firm won approval to list in Shenzhen in 2013 but an IPO has yet to materialize.

Jiangsu Sanyou manufactures and sells garments, fineries and clothing materials in China and internationally.

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• Topics
• Greater China
• Exits
• Healthcare
• Renminbi fund
• China
• healthcare
• Exit
• M&A
• The Carlyle Group
• Cathay Capital Private Equity
• IPO