China Resources Medical Injects HK$3.72 Billion into Phoenix Healthcare to Become Controlling Shareholder
Phoenix Healthcare today announced that the Company has signed a term sheet with China Resources Medical Holdings Company Limited regarding the acquisition of assets and interests, and/or rights to manage and operate, the wholly-owned subsidiaries of China Resources Medical.
Phoenix Healthcare proposes to pay the consideration for this acquisition by issuing shares of the listed company to China Resources Medical Holdings Company Limited’s overseas holding subsidiary at a price of HK$8.04 per share, with a total issuance of 463 million shares, representing a transaction value of approximately HK$3.72 billion. Upon completion of this acquisition, China Resources Medical will become the single largest shareholder of Phoenix Healthcare, holding no less than 35.7% of the enlarged issued share capital of the listed company after the share issuance, and the company will be renamed“China Resources Phoenix Healthcare Group Co． Ltd ”China Resources Phoenix Healthcare Group Co., Ltd. (“China Resources Phoenix”).
About China Resources Medical
It is reported that China Resources Medical Holdings Company Limited, established in Hong Kong in 2011, is a wholly-owned subsidiary of China Resources (Holdings) Company Limited. The company specializes in hospital investment and construction, operational management, and related extended services. It owns or manages 47 medical institutions and 3 elderly care facilities. Among the 47 medical institutions are 4 tertiary hospitals, 6 secondary hospitals, 25 primary hospitals, and 12 community medical institutions. All hospitals and clinics are designated providers under the national health insurance scheme.
The aforementioned medical institutions have a total of 4,954 approved beds, with approximately 6,000 beds actually available.
The above-mentioned elderly care institutions have a total of 300 approved beds.
In 2015, the total medical revenue reached approximately RMB 2.41 billion.
Among them, Guangdong Sanjiu Brain Hospital is a modern large-scale Grade 3A specialized hospital; Kunming Children's Hospital is the only large-scale Grade 3A children's hospital in Yunnan Province; China Resources Wugang General Hospital is a large comprehensive Grade 3A hospital; Huaibei Miners' General Hospital is the earliest-established and largest comprehensive Grade 3A hospital in Huaibei City; and the Department of Nuclear Medicine at Xuzhou Mining Hospital has significant influence in the Huaihai Economic Zone with its diagnostic and therapeutic technologies.
In 2016, China Resources Medical Group and Joint Commission International (JCI) jointly established the CR JCI Hospital Management Research Institute to enhance hospital service and management standards through business collaboration with JCI.
Based on the current number of hospitals and beds, China Resources Phoenix will operate a total of 107 medical institutions and 3 elderly care facilities, including 7 tertiary hospitals, 12 secondary hospitals, 34 primary hospitals, and 54 community medical institutions. The total number of actually open beds in these medical institutions is approximately 11,780, making it one of the largest healthcare service groups in Asia by the number of operational beds.