IKang chairman, Meinian withdraw take-private bids

Yunfeng joined the bidding for iKang last week, offering $20.00-$25.00 per share for all outstanding American Depositary Shares (ADSs) in the company. The Zhang-led buyer group had offered $17.80 per share, while the latest offer by the Meinian-led consortium was $25 apiece.

Zhang initially teamed up with FountainVest Partners last August to submit a bid of $17.80 per share. A PE-backed consortium that included its industry rival Meinian then offered $22.00 per share, prompting iKang's management to announce a right issue, or "poison pill" strategy, intended to thwart the rival bid. The Meinian consortium came back in December with an offer of $23.50 per share.

The Zhang-led group has yet to improve on its $17.80 bid, but it brought in Alibaba Group, Ontario Teachers' Pension Plan (OTPP), China Life, Legend Capital, New China Capital International and LTW Capital Jaguar Investment to join the consortium. In response to this, the Meinian-led consortium increased its offer to $25.00 per share in January.

Zhang withdrew from the buyer group after Yunfeng's new proposal. He said in a public letter that he is willing to cooperate with a friendly takeover by investors who can bring long-term value to it. He is also willing to leave the firm when the transaction is completed.

Set up in 2004, Beijing-based iKang provides medical examination services through 89 self-owned medical centers in 27 cities, as of June 6. Outpatient services and dental treatments are also provided by a minority of these centers. Third-party service providers are used in 150 cities.

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• Topics
• Greater China
• Healthcare
• Buyouts
• China
• USA
• Sequoia Capital
• Alibaba Group
• Yunfeng Capital
• Fountainvest Partners