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Concord Medical Services Holdings
Limited ("Concord Medical" or the "Company")
, an operator of
specialty cancer hospitals and the largest network of radiotherapy and
diagnostic imaging centers in China, today announced that the Company has,
through its subsidiaries, entered into a definitive agreement to sell 52%
equity interest in Chang'an Hospital to the owner of the 48% equity, for a
total consideration of RMB398 million (US$64.8 million, or $1=RMB 6.1376).
The consideration also includes the sale of ownership interests in Chang'An
CMS International Cancer Center ("CCICC"), a specialized cancer diagnosis and
treatment center established between Concord Medical and Chang'an Hospital in
July 2010. This 100% cash transaction has been approved by the boards of
directors of both parties. The closing of this transaction is subject to
relevant government approvals and is expected to be completed by the end of
2014. Concord's Board believes the transaction price reflects fair market
value for Chang'an Hospital based on valuation report by an independent
third-party appraisal company engaged by the Company.
After the closing of this transaction, the Company will continue to cooperate
with Chang'an Hospital on hospital management, oncology department and talent
training. Both sides have agreed to hold discussions on future collaboration
and to sign collaborative agreements in the future.
"Our divestment of Chang'an Hospital allows Concord to more fully concentrate
on our efforts to build a nationwide network of diagnosis and treatment
centers and specialized cancer hospitals," Dr. Jianyu Yang, Chairman and CEO
of Concord Medical, comments. "The proceeds from this transaction will be used
to fund the construction of our current projects as well as to pay off some
current debt. Going forward, we expect to open five free-standing
radiotherapy cancer centers and to begin construction on one to two Level-III
premium cancer specialty hospitals in 2015."
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