Carlyle to exit China's Concord Medical via founder-led privatization

According to a statement, the founder-led proposed acquisition was priced at $1.73 per Class A ordinary share, or $5.19 per American Depository Share. This represents a premium of 33.8% to the company's last trading price before the deal was announced.

Under the agreement, an investment vehicle controlled by chairman and CEO Jianyu Yang plans to acquire a combined of 27.25 million ordinary shares from Carlyle and individual investor-owned entity Solar Honor. As such, Carlyle will generate approximately $22.64 million through selling its current 13.08 million ordinary shares, a 9.7% stake in the company.

Concord Medical partners with hospitals to build radiotherapy and diagnostic imaging centers. It is a leader in the gamma knife operation field, a surgical device used to treat tumors with radiation therapy. As of March, the company operated a network of 125 centers with 174 hospitals in 52 Chinese cities.

Prior to an US IPO in December 2009, Concord raised several rounds of PE funding. Carlyle initially invested $5 million in the company in 2007. A year after, it raised a total of $90 million across two rounds of funding from Carlyle, China International Capital Corporation (CICC) and C.V. Starr & Co.

Concord generated $95 million in revenue last year, slightly up from RMB616 million ($92 million) in 2014. The company suffered a net loss of $12 million in 2015, following a loss of the same amount in 2014.

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• Topics
• Greater China
• Healthcare
• Buyback
• Buyouts
• China
• healthcare
• The Carlyle Group