10% Stake of Concord Medical Services Holdings Limited (CCM) Held by Fosun International Ltd
Fosun International Ltd
stated that they own a 10% stake in Concord Medical Services Holdings Limited (NYSE:CCM) in a Form 13D disclosure that was filed with the SEC on Monday, November 13th. The investor owns 13,086,350 shares of the stock valued at approximately $50,513,311. The reporting parties listed on the disclosure included Fosun International Limited, Fosun Industrial Holdings Limited and Oasis Inspire Limited. The disclosure is available through Edgar at this link.
Fosun International Ltd
provided the following explanation of their ownership:
On October 31,2017, Oasis Inspire entered into a share purchase agreement (the “Share Purchase Agreement”) with Carlyle Asia Growth Partners III, L.P. (“CAGP III”) and CAGP III CoInvestment, L.P. (“CAGP III CoInvestment”), a copy of which is filed hereto as Exhibit 99.3. Pursuant to the Share Purchase Agreement, Oasis Inspire purchased (i)12,584,500 Ordinary Shares from CAGP III for an aggregate purchase price of US$12,374,758.00 (the “CAGP III Purchase Price”), and (ii) 501,850 Ordinary Shares from CAGP III CoInvestment for an aggregate purchase price of US$493,486.00 (the “CAGP III CoInvestment Purchase Price” and, together with the CAGP III Purchase Price, the “Aggregate Purchase Price”). The Aggregate Purchase Price has been calculated based on a price of US$0.98 per Ordinary Share.
Mr. Jianyu Yang, the controlling shareholder of the Issuer also signed a letter of undertaking (the “Controlling Shareholder’s Undertaking Letter”) on October 31,2017 and agreed to use his best efforts to (i) nominate and support the election of Yanxiang LU, a representative designated by Oasis Inspire (the “Oasis Nominee”) to the board of directors of the Issuer (the “Board”), and (ii) cause any outstanding voting securities held by the Controlling Shareholder and his affiliates to be voted in favor of the Oasis Nominee’s election or appointment to the Board as a director. The Controlling Shareholder’s Undertaking Letter is filed hereto as Exhibit 99.4.
In addition, in connection with Oasis Inspire’s entry into the Share Purchase Agreement, the Issuer signed a letter of undertaking (the “Issuer’s Undertaking Letter”) on October 31,2017 and undertakes to Fosun International that it will (a) consent to, and (b) use its reasonable efforts to (i) facilitate and take all actions reasonably required on its part to update its register of members to reflect Oasis Inspire as the registered owner of the Ordinary Shares purchased pursuant to the Share Purchase Agreement, and (ii) upon written request of Fosun International, facilitate and take all actions reasonably required on its part to enable the conversion of the Ordinary Shares purchased pursuant to the Share Purchase Agreement into American depositary shares. The Issuer’s Undertaking Letter is filed hereto as Exhibit 99.5.
The Reporting Persons acquired the Ordinary Shares that are the subject of this Schedule 13D for investment purposes. Although each of the Reporting Persons has no present intention to acquire securities of the Issuer, it intends to review its investment on a regular basis, which review may be based on various factors, including the Issuer’s business and financial condition, results of operations and prospects, general economic and industry conditions, the securities markets in general and those for the Issuer’s securities in particular, as well as other developments and other investment opportunities. Accordingly, each Reporting Person reserves the right to change its intentions, as it deems appropriate, and may at any time and from time to time, either alone or as part of a group, (i) acquire additional securities of the Issuer, through open market purchases, privately negotiated transactions or otherwise, (ii) dispose of all or a portion of the securities of the Issuer owned by it in the open market, in privately negotiated transactions or otherwise, or (iii) take any other available course of action which could involve one or more of the types of transactions or have one or more of the results that relate to or would result in any of the actions required to be reported herein.
Except as set forth in this Item 4, the Reporting Persons have no present plans or proposals that relate to or would result in any of the actions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D. The Reporting Persons do, however, reserve the right in the future to adopt such plans or proposals subject to compliance with applicable regulatory requirements.
Separately, Renaissance Technologies LLC grew its position in Concord Medical Services Holdings Limited by 48.0% in the first quarter. Renaissance Technologies LLC now owns 199,100 shares of the company’s stock valued at $940,000 after acquiring an additional 64,600 shares during the last quarter. Hedge funds and other institutional investors own 12.56% of the company’s stock.
Separately, Zacks Investment Research upgraded Concord Medical Services Holdings Limited from a “hold” rating to a “buy” rating and set a $4.50 target price on the stock in a research report on Monday, July 31st.
Concord Medical Services Holdings Limited (CCM) traded up $0.08 during trading on Monday, reaching $3.86. The company’s stock had a trading volume of 1,500 shares, compared to its average volume of 22,177. Concord Medical Services Holdings Limited has a 1 year low of $3.22 and a 1 year high of $4.96. The company has a current ratio of 1.60, a quick ratio of 1.59 and a debt-to-equity ratio of 0.20.
Concord Medical Services Holdings Limited Profile
Concord Medical Services Holdings Limited is engaged in the leasing of radiotherapy and diagnostic imaging equipment, the provision of management services to hospitals. The Company is also engaged in hospital operations. The Company’s segments are network and premium cancer hospital. The Company operates a network of radiotherapy and diagnostic imaging centers in China.
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