New Frontier Corporation (NFC) and United Family Healthcare (UFH) announced that they have entered into a definitive transaction agreement under which NFC will acquire UFH from its existing shareholders to create one of China’s largest publicly listed integrated health care services company. With an anticipated initial enterprise value of $1,440 million, the new company will operate under the name of New Frontier Health Corporation (NFH) with the mission to deliver high quality and comprehensive health care services across China, and to continue to grow through organic expansion and strategic acquisitions.
To fund the purchase price and provide working capital to the company, in addition to the $478 million of cash raised by NFC in its initial public offering and through forward purchase commitments obtained at the time of NFC’s initial public offering, NFC has obtained an additional $711 million in equity commitments from a group of well-known investors including Vivo Capital, Nan Fung Group, and a group of strategic investors and global asset managers. Of the additional $711 million in equity commitments, NFC is expected to utilize at least $565 million in support of the acquisition.
As part of the transaction, UFH is expected to be given the exclusive right to manage New Frontier Group’s 64,000 square meter flagship Shenzhen city center hospital. Following the close of the transaction, Antony Leung, chairman of NFC, will become chairman of the company’s board of directors, Qiyu Chen, chairman of Fosun Pharma, will be co-chairman of the company’s board of directors, and Roberta Lipson, founder and chief executive officer of UFH, will be chief executive officer of NFH. Additionally, Carl Wu, chief executive officer of NFC, will lead a new executive committee of the company’s board of directors to support and guide the management for the continued success of NFH.
New Frontier Corporation is a public investment company formed by New Frontier Public Holding Ltd., an affiliate of New Frontier Group, for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. New Frontier Group is a China-focused investment group that invests in, builds, and operates diversified businesses in the Chinese new economy sectors.
United Family Healthcare is a leading private health care provider organization offering comprehensive premium health care services in China through the operations of its United Family Hospitals and Clinics, a network of private hospitals and affiliated ambulatory clinics. United Family Healthcare currently has nine hospitals and in total over 700 licensed beds in operation or under construction in all four 1st tier cities and selected 2nd tier cities.
This was reported by New Frontier Corporation on July 30, 2019.
Contact information: United Family Healthcare, 10 Jiuxianqiao Road, Chaoyang District, B7, Universal Business Park, Beijing, China 100051; 4008-919191; Email: email@example.com; Website: http://ufh.com.cn