CDH, CCB exit Chinese hospital operator to Taiking Insurance

CDH sold 78.6 million shares, representing a 10.37% interest in the company, for HK$6.54 apiece, a 9% premium to the November 17 closing price. CCB offloaded 46 million shares, or a 6.07% stake, at the same price. Two investment entities linked to Yuming Lin, Harmonicare's founder and CEO, also sold 75.8 million shares to Taikang, giving the insurer an overall holding of 26.44%, according to a filing.

CDH invested RMB282 million ($40.9 million) in Harmonicare - then known as Bosheng Medical - in 2008, while CCB committed RMB237.1 million to the company two years later. Harmonicare went public in July 2015, raising HK$1.59 billion after pricing the offering at HK$7.55 per share.

Harmonicare employs 484 physicians across its 11 hospitals located in Beijing, Shenzhen, Chongqing, Wuhan, Guangzhou, Guiyang and Fuzhou, with more than 800 beds. They provide inpatient and outpatient services, with a focus on obstetrics and gynecology. A total of 601,723 outpatient visits were completed in 2015 as well as 25,668 inpatient visits. Average expenditure per patient was RMB1,393.4.

The company posted revenue of RMB909.4 million in 2015, down from RMB935.8 million the previous year. Net profit rose to RMB110.4 million from RMB105.1 million over the same period.

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• Topics
• Greater China
• Open market
• Healthcare
• China
• CDH Investments Management
• CCB International Asset Management
• Exit