IKang Healthcare Shareholders Approve Buyout
IKang Healthcare Group Inc. (Nasdaq: KANG), which provides private preventive healthcare services in China, said today announced that shareholders approved a previously announced merger plan that would take the company private.
The Beijing-based company said that more than 99 percent of the votes cast by shareholders were in favor of the plan. Sixty-three percent of the shares were voted, representing 72 percent of the voting rights. The merger plan, announced March 26 and amended May 29, would remove the company&`#`39;s American depositary shares, each representing one-half of a class A common share, would no longer be listed on the Nasdaq Global Select Market.
Shares in iKang closed today at $18.60, up 3 cents.
Under terms of the original proposal, the company announced in March that it had agreed to go private through a merger agreement at $20.60 per American depositary share. In May, the company announced it had amended its previously announced merger agreement, which included IK Healthcare Investment Ltd. and IK Healthcare Merger Ltd. Under terms of the new deal, Boyu Capital Fund III,L.P. joined the affiliates of Yunfeng Capital and Alibaba Group Holding Ltd. (NYSE: BABA) as a sponsor and provide equity financing for the deal, the company said.
With 111 company-owned operating medical centers, covering 33 of China&`#`39;s largest cities, iKang also provides medical services in more than 200 cities by contracting with over 400 third-party facilities.