Hengkang Medical to Acquire 70% Stake in PRP Diagnostic Imaging, Australia's Second-Largest Imaging Provider, for RMB 1.694 Billion
Hengkang Medical Group
May 4,Hengkang MedicalIn a late announcement, it was stated that its wholly-owned subsidiary, Hengkang Medical Investment (Australia) Co., Ltd., intends to acquire the equity interest in Australian company PRP Diagnostic Imaging Pty Ltd (hereinafter referred to as “PRP Company”).70%equity interest. The acquisition price for this transaction is approximatelyRMB 1.694 billionThe company stated that this acquisition will help accelerate Hengkang Medical’s internationalization, effectively integrate advanced international medical services and technologies with the needs of domestic patients, continuously enhance the company’s level of medical services, and improve its profitability and sustainable development capabilities.
According to VCBeat, PRP is the second-largest company in Australia specializing in diagnostic imaging. As of December 31, 2016,PRP Company operates 29 diagnostic imaging centers in New South Wales, Australia, providing diagnostic imaging services to patients.Services, with extensive experience and leading management capabilities in electronic remote diagnostics. PRP Company provides nuclearMagnetic Resonance Imaging (MRI), Computed Tomography (CT), Gamma Camera Imaging, Ultrasound Examination, Mammography, and Panoramic Radiographyapproximately 20 types of imaging diagnostic services, including examinations and PET scans.
PRP Company’s audited financial data for the last three fiscal years are as follows (Australian fiscal year, July 1 to the followingJune 30 marks the end of a fiscal year in Australia):
Note:
The negative net assets in fiscal years 2016 and 2015 were primarily attributable to PRP Company’s initial full adoption of the Australian Accounting Standards in fiscal year 2016. Under these standards, certain trust units were reclassified as debt instruments, resulting in an increase in liabilities, with retrospective adjustments made to the comparative data for fiscal year 2015. In connection with this transaction, PRP Company is required to undergo a restructuring. Upon completion of the restructuring, all interests in PRP Company will be held entirely on an equity basis by a newly established holding company, and all existing trust unit holders will exchange their holdings for shares in the new holding company. Consequently, the aforementioned accounting treatment will no longer apply after the restructuring. Taking these matters into account, PRP Company’s net assets for fiscal years 2016 and 2015 would have been positive, amounting to approximately RMB 110,080,200.
July 2016,The National Health and Family Planning Commission issued the "Notice of the National Health and Family Planning Commission on Printing and Distributing Medical Imaging DiagnosisNotice on the Basic Standards and Management Specifications (Trial) for Diagnostic Centers, Encouraging Medical Imaging Diagnostic Centers to Form Chainsscaling and group-based development, establishing standardized management and service models for independent diagnostic imaging centers in Chinaprovides favorable policy guarantees for the development of.PRP’s extensive experience in operating imaging centers will help Hengkang Medical establish independent imaging centers in China.。
The announcement shows that Shanghai Renying Medical Imaging Technology Co., Ltd., a wholly-owned subsidiary of Hengkang Medical, plans to rely on the hospitals under the company to establishRegional independent medical imaging centers, with plans to gradually expand and develop the market for independent imaging centers in China.PRPThe company has over 10 years of experience in operating independent imaging centers, and its core physicians each have more than 10 years of professional experience.PRP Company enjoys high brand recognition and an excellent reputation in Australia’s medical imaging diagnostics industry.
Following this acquisition, Hengkang Medical will provide overseas medical treatment programs to high-end domestic clients.Imaging data, along with imaging records of complex and rare cases from the company’s existing hospital network, are reviewed by domestic and international physicians through multi-disciplinary consultations.consultation, which facilitates the diversification of the company’s service models and the upgrading and refinement of its service system.
For Hengkang Medical,On the one hand, PRP companies are abundant’s imaging center operational experience will help the company establish independent imaging centers in China, forming a synergy with its medical services businessgenerate synergies; on the other hand, by offering overseas medical treatment programs to high-end domestic clients, the company...Imaging data from end-user clients and complex case imaging records within the company’s existing hospital network are reviewed by domestic and international physicians.Conducting consultations facilitates the diversification of the company’s service models and the upgrading and refinement of its service system.