IKang “Going Private” Proposal
BEIJING, Aug. 31, 2015 (GLOBE NEWSWIRE) — iKang Healthcare Group, Inc. (“iKang” or the “Company”) (KANG), China’s largest private preventive healthcare services provider, today announced that its board of directors (the “Board”) has received a non-binding proposal letter, dated August 31, 2015, from Mr. Ligang Zhang (“Mr. Zhang”), founder, chairman and chief executive officer of iKang and certain of his affiliated entities, and FV Investment Holdings (“FountainVest”, together with Mr. Zhang and his affiliated entities, the “Buyer Group”), proposing a “going-private” transaction (the “Transaction”) to acquire all of the outstanding Class A common shares (“Shares”) and American depositary shares (“ADSs”, each representing 1/2 Share) of the Company not already owned by the Buyer Group for US$17.80 in cash per American depositary share of the Company (“ADS”), which represents a premium of 10.8% to the closing trading price of the Company’s ADSs on August 28, 2015, and a premium of 18.0% and 9.7% to the volume-weighted average closing price of the Company’s ADSs during the last 7 and 30 trading days, respectively.
According to the proposal letter, the Buyer Group intends to fund the consideration payable in the Transaction with a combination of debt and/or equity capital, and rollover equity in the Company. A copy of the proposal letter is attached as Annex A to this press release.
The Board intends to form a special committee consisting of independent directors to consider this proposal.
The Board cautions the Company’s shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company’s response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.