The existing buyer consortium comprised of Fosun Industrial Co., an affiliate of Fosun Pharma, and TPG, has entered into an amended merger agreement with Roberta Lipson, the CEO of Chindex, providing for an increase in the merger consideration from US$19.50 per share in cash to US$24.

 

The increase in the offer price was triggered by an announcement by Chindex that it has received an offer of US$23 per share from a third party.

 

Under the amended agreement, the approval by the stockholders of Fosun Pharma will not be a condition to effect the merger. Fosun will roll over its equity and Fosun Pharma will seek approval of its stockholders for the former’s cash contribution to the buyer consortium. But in the absence of such stockholder approval, the consortium will remain funded for the merger by TPG.

 

Chindex focusses its business on the provision of high-end healthcare service in China and operates the first foreign-invested hospital in China, the United Family Hospital. As of April 10 2014, Fosun Industrial has 3.157 million shares of Chindex, representing about 17.30% of its total outstanding shares.

 

In a company statement, Chindex said its privatization plan is subject to the approval by its qualifying shareholders.

 

Upon completion of the proposed privatization, Fosun will indirectly hold up to 48.59% equity interest in Chindex.  It is expected to increase its shareholding in Chindex to up to 15.56% and the latter will be delisted from Nasdaq.