China-focused Concord Medical gets management buyout offer


Management has offered to buy Beijing-based radiotherapy and diagnostic firm Concord Medical Services ($CCM) in a $228 million bid.

Jianyu Yang, chairman and CEO of Concord and a finance vehicle he controls, Morgancreek Investment Holdings, along with Blue Ocean Management, made the July 11 privatization offer of $5.19 for each of the 9 million American Depositary Shares. That amounted to a 34% premium to the previous day's closing price for the 19% stake the firm didn't hold.

In addition to the Carlyle investment, Solar Honor also has shares.

NYSE-listed Concord Medical has plans afoot to add to its services by developing its own cancer hospitals under the name Meizhongjiahe. One unit has already opened in China and more are planned to augment its income from contracts with 74 hospitals in China.

The expansion, and a related effort to grow a medical tourism business out of a hospital the company owns in Singapore, form the backbone of a management plan to grow as China opens up to more private medical care.

China has approved and encouraged private hospital investment as a way to provide greater depth of therapeutic services and to take pressure off an often overwhelmed public network.

Carlyle has been a major player in the space, most recently as part of a group in March that saw Meinian Onehealth Healthcare buy Ciming Health Checkup Management for $415 million as part of a move to consolidate medical exam and disease screening services in China.

- here's the release

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