China Resources Group has teamed up with Australian investment bank Macquarie to buy a majority of cancer and cardio medical care provider GenesisCare in a transaction that will face regulatory approval on foreign investment.
The sale, which Reuters said was valued at $1.3 billion, sees private equity firm KKR selling its 45% stake in Sydney-based GenesisCare. Doctors and managers holding the remaining 55% stake that will be sold to China Resources and Macquarie in a fairly complex transaction that needs a nod from Australia's Foreign Investment Review Board and a shareholder vote.
China has encouraged private hospitals to fit out its medical system with newer services and take some of the patient demand strains away from a massive public hospital network.
China Resources, or CR, is expected to use its clout and experience gained through China hospital chain unit CR Healthcare to get GenesisCare to expand into China where access to cutting-edge therapies--particularly for cancer--lag because of an approval backlog.
At the same time, the sprawling CR Group is reportedly planning a $1 billion initial public offering in Hong Kong for unit CR Pharmaceutical.
- here's the story from Reuters
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