New Frontier Health Corp said on Wednesday it received an offer to be bought out by a consortium of investors in a deal that values the healthcare service provider at nearly $1.72 billion.
The company said in a statement it received a preliminary non-proposal binding letter from a buyer-group, including President Carl Wu, Carnival Investments, Vivo Capital Fund IX, Max Rising International Ltd, a company affiliated with Carl Wu, among others to “go private”.
The group offered to acquire outstanding shares of New Frontier Health, which operates private hospitals, outpatient clinics and medical centers, for $12 in cash, representing a premium of 23.6% to the company’s closing price on Tuesday.
New Frontier Health was formed after blank-check company New Frontier Corp acquired United Family Healthcare, one of the largest private operators in China, from private equity firm TPG and Shanghai Fosun Pharmaceutical Group Co Ltd for $1.4 billion in 2019.
A special committee of the Board will be formed to consider the proposal letter and cautioned that there is no assurance that any definitive offer will be made by the buyer-group, New Frontier said.
Reporting by Anirudh Saligrama in Bengaluru, Editing by Sherry Jacob-Phillips
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