Consortium Submits Preliminary Non-binding Proposal to Acquire Nasdaq-listed iKang

- Jiangsu Sanyou (Meinian), Ping An, Taiping, Huatai Ruilian, Sequoia and Cathay Capital form consortium

- The Proposal provides US$22 per ADS or US$44 per Share in cash, representing a premium of approximately 36.9% to the unaffected closing price of iKang on August 28, 2015, and a premium of approximately 23.6% to the Insider Proposal[1] dated August 31, 2015

- Should the transaction proceed, it would create significant synergies in China's preventive healthcare industry

Nov 29, 2015, 04:15 ET from Meinian Onehealth Healthcare (Group) Co., Ltd

BEIJING, Nov. 29, 2015 /PRNewswire/ -- Jiangsu Sanyou Group Co Ltd (SZSE: 002044, "Jiangsu Sanyou", also known as Meinian Onehealth Healthcare (Group) Co., Ltd.), announces today that it is a member of a consortium which has submitted a preliminary non-binding proposal (the "Proposal") to acquire iKang Healthcare Group, Inc. ("iKang") (NASDAQ: KANG).  

The consortium includes Meinian Onehealth Healthcare (Group) Co., Ltd, ("Meinian"), a leading provider of preventive healthcare services in China, which recently became an A share listed company through the backdoor listing of Shenzhen-listed Jiangsu Sanyou. The consortium also includes Shenzhen Ping An Decheng Investment Co., Ltd. ("Ping An"), Taiping Guofa (Suzhou) Capital Management Co., Ltd. ("Taiping"), Huatai Ruilian Fund Management Co., Ltd. ("Huatai Ruilian"), Sequoia China Investment Management LLP ("Sequoia") and Cathay Capital Private Equity SAS ("Cathay").

The Proposal offers compelling value to iKang shareholders. Under the Proposal, the consortium will acquire all the outstanding shares and ADSs of iKang in cash for US$22 per ADS or US$44 per Share. It represents a highly attractive premium of approximately 36.9% to the unaffected closing price on August 28, 2015, the last trading day before iKang publicly announced receipt of the Insider Proposal, and a premium of approximately 23.6% to the Insider Proposal.

The consortium will form an acquisition company for the purpose of implementing the transaction and intends to finance it with equity from its members. While the consortium is fully prepared to pursue the transaction upon the terms and subject to the conditions set forth in the Proposal, it is open-minded and flexible with respect to the alternative structure of the transaction to expedite the process of delivering value to iKang's shareholders.

All members in the consortium have strong strength and solid track records to provide support for the Proposal. They are respected experienced investors. Meinian is one of the largest preventive healthcare service providers in China, with over 100 self-owned medical examination centers in more than 50 core cities in China. Meinian served almost six million customers in 2014. Ping An is indirectly controlled by Ping An Insurance (Group) Company of China, Ltd. which has developed into a personal financial services group with three core businesses of insurance, banking and investment, enjoying parallel growth of its core and internet finance businesses. Ping An Group's shares are jointly listed on the Hong Kong Exchange and on the Shanghai Stock Exchange. Taiping was formed by Taiping Asset Management Co., Ltd. (Taiping Asset management), and Taiping is the asset management arm of China Taiping Insurance Holding Co. Ltd. (CTIH). Taiping Asset Management's assets under management have reached USD 51.7 billion.  CTIH, a subsidiary of China Taiping Insurance Group Co., Ltd., was listed on the Hong Kong Stock Exchange and has consistently been listed in "China Fortune 500" since 2009. Huatai Ruilian is a well-known private equity firm in China and has managed three private equity funds with more than USD 1.7 billion in assets under management. Sequoia is an international private equity and investment firm. Sequoia China is one of China's most successful venture capital and private equity funds. Cathay Capital is a leading international private equity firm in the field of cross-border investment. With more than EUR 1.5 billion in assets under management, it has invested in 44 companies across three continents.  Its Sino-French fund was jointed established by China Development Bank Capital, subsidiary of China Development Bank, and National Investment Bank of France. It's also the first independent Sino-French private equity management company approved by AMF.

The healthcare sector is a key focus and investment priority of all members in the consortium. The consortium agrees that should the transaction proceed, as the leading players in China's fast growing preventative healthcare market, Meinian and iKang can build a powerful and complementary alliance, creating a strong leader in a currently fragmented market. Such an alliance would help optimize the structure of the industry, promote the healthy development of the sector, and bring greater convenience to customers, thereby delivering benefits to both companies' shareholders.

The Proposal is subject to further negotiation of definitive agreements and the satisfaction of customary closing conditions, including regulatory approvals.

[1] Insider Proposal: On August 31, 2015, Mr. Ligang Zhang, the founder, chairman and chief executive officer of iKang and certain of his affiliated entities, and FV Investment Holdings, submitted a preliminary non-binding proposal to acquire all outstanding Class A Shares and ADSs not already owned by them for US$17.8 in cash per ADS.

About Jiangsu Sanyou and Meinian

On August 2015, Meinian Onehealth Healthcare (Group) Co., Ltd ("Meinian") became an A share listed company through the merger with listing of Jiangsu Sanyou. Meinian is one of the largest preventive healthcare service providers in China, with more than 100 self-owned medical examination centers in more than 50 core cities in China. In 2014, Meinian provided its services to almost six million customers. Leveraging its high quality and professional medical examination services, Meinian also provides high quality healthcare management services, including preventive healthcare and wellness maintenance, to its corporate and individual customers.

About iKang

iKang Healthcare Group, Inc. was listed in NASDAQ in 2014. It is a leading provider in China's medical examination and healthcare services market. The services are provided by aigcom.com and iKang medical examination service. Through iKang's integrated service platform and established nationwide network of medical centers and third-party service provider facilities, the Company provides comprehensive and high quality preventive healthcare solutions, including a wide range of services including medical examinations services, treatment, family doctors, chronical disease, and health insurance. The Company aims to help people to avoid ill health, prevent chronic disease, and solve difficulties of finding medical treatment, in order to improve people's overall health standards in modern China.

 

Media Inquiries
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Mainland China
+ 86 (10) 5960 8653
Xiaoni Chen
New York
+ 1 (212) 333 3810
Darren McDermott

 

Media Inquiries

Brunswick Group 
meinian@brunswickgroup.com 

Mainland China
+ 86 (10) 5960 8653
Xiaoni Chen

New York
+ 1 (212) 333 3810
Darren McDermott

SOURCE Meinian Onehealth Healthcare (Group) Co., Ltd