Meinian Statement in Response to iKang Allegations

Mar 11, 2016, 07:22 ET from Meinian Onehealth Healthcare

BEIJING, March 11, 2016 /PRNewswire/ -- During a press conference on March 10, iKang alleged a "violation of anti-monopoly law by Meinian Onehealth Healthcare Holdings Co., Ltd (SZSE:002044) (Meinian) and its ultimate controlling shareholder Mr. Rong Yu."

Meinian rejects this allegation, and hereby issues the following statements:

  1. The issue raised by iKang concerns another investor in Ciming, Tianyi Asset Management. Meinian is not involved in the merger review application concerning Tianyi Asset Management's investment in Ciming, and therefore, Meinian is not in a position to comment on this matter. Meinian has complied with its obligations to make the required announcement of major assets restructuring in a timely fashion during the process of acquiring Ciming's shares. Meinian's acquisition of Ciming will proceed in compliance with all relevant laws and regulations.
  2. According to an independent sector report from Haitong Securities, the preventive health check industry in China has a low market concentration. The top three private operators, namely Meinian, Ciming and iKang, together only make up 2.6% of the total market share. Therefore the preventive health check market in China is highly competitive with thousands of public hospitals and other professional services providers actively competing in the market. There is no evidence that the market faces monopoly issues.
  3. A buyer consortium, of which Meinian is a member, has previously announced a proposal to take iKang private. Meinian believes the claim is designed by Mr. Ligang Zhang, a member of a rival buyer group attempting to acquire iKang, to unduly influence iKang shareholders against what Meinian and its partners in the consortium believe is a compelling proposal. Meinian believes iKang's press conference on March 10 was one such tactic designed to exert undue influence on the regulatory authorities and investors against the proposal by the consortium of which Meinian is a member.

The buyer group, of which Meinian is a member, remains committed to acquiring iKang in compliance with relevant regulations and laws. Meinian has always worked, and will continue to work, to the highest standards of business ethics to support the healthy and positive development of our industry and market.

Meinian Onehealth Healthcare Holding Co., Ltd

Meinian Onehealth Healthcare Holding Co., Ltd ("Meinian") was founded in 2004. It is China's leading preventive healthcare service provider, with more than 130 self-owned medical examination centers in more than 80 core cities. In 2015, Meinian provided its services to almost ten million customers. The development of Meinian is built on the size of its customer base, the accuracy of its data, and the standardised medical service it provides across China. Leveraging its professional medical examination services and health risk evaluation, Meinian also provides high quality healthcare management services, including preventive healthcare and wellness maintenance, to its corporate and individual customers. On August 2015, Meinian became an A-share listed company (SZ: 002044). Meinian is an influential listed company in the medical service and healthcare sectors in China.

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SOURCE Meinian Onehealth Healthcare