SHANGHAI, April 21 Chinese drugmaker Shanghai
Fosun Pharmaceutical Group Co Ltd has raised its
offer for U.S.-listed Chindex International Inc by 15
percent to $223.6 million after a bidding war for the
China-focused hospital chain.
The Chinese firm increased its offer to $24 per share from
its original $19.50 per share, after an unidentified bidder
offered $23 per share in a "superior proposal" earlier this
month, according to a filing to the Shanghai Stock Exchange on
Fosun had earlier offered to pay from $193.7 million for
The acquisition would help Fosun Pharmaceutical increase its
access to China's fast-growing private healthcare market. The
government is keen to promote investment in the sector to
support overburdened public hospitals and bring prices down
through increased competition.
Chindex runs the premium-end United Family Healthcare
hospital chain in China.
The offer marks a 4.6 percent premium to Chindex's Friday
close of $22.94, and values the company at $434.4 million based
on 18.1 million outstanding shares as of March 11.
Fosun Pharmaceutical will invest up to $223.6 million to
become the largest shareholder in Chindex International and up
to $45 million for a 30 percent stake in its medical equipment
supplier unit Chindex Medical Ltd, the statement said.
In February, Fosun Pharmaceutical and private equity firm
TPG made the original offer to take Chindex private. The deal
would see Fosun increase its stake to 48.65 percent from 17.45
percent, while TPG would hold 48.14 percent. Chindex founder
Roberta Lipson would retain a 3.21 percent stake.
China's healthcare sector is estimated to hit $1 trillion by
2020, according to McKinsey & Company, but is bogged down by
rampant corruption, skills shortages and fragmentation.
Fosun Pharmaceutical's Shanghai-listed shares closed down
1.17 percent on Monday, slightly ahead of the benchmark CSI 300
Index which was down 1.67 percent.
(Reporting by Adam Jourdan; Editing by Miral Fahmy)