A United States health care company that does business in China has agreed to be sold to a group of investors for $461 million after the investors raised their bid in the face of a rival offer.
The company, Chindex International, said on Monday that it had agreed to the revised offer of $24 a share in cash. The buyers include the private equity firm TPG and a subsidiary of the Shanghai Fosun Pharmaceutical Group.
The group originally bid $19.50 a share, or $369 million, in February. But Chindex subsequently received a rival offer of $23 a share from a bidder whose identity was not disclosed.
Chindex said on Monday its board had decided that the new offer from the TPG group was “more favorable†and that the rival suitor had declined to raise its bid. The deal, subject to approval by regulators and by Chindex shareholders, is expected to close in the second half of the year.
Shareholders of Shanghai Fosun Pharmaceutical, however, will not be required to bless the transaction. The company, which is contributing equity to the deal, will ask its shareholders to approve a cash contribution, but if shareholders do not sign off, then TPG will contribute all the deal’s cash, the announcement said.
Shares of Chindex, listed on the Nasdaq, rose more than 3 percent on Monday, to about $23.70.
The company, which is based in Bethesda, Md., provides medical care in China through its hospitals unit, United Family Healthcare. It also supplies medical equipment.
Among the bidding group is Roberta Lipson, Chindex’s chief executive, who will contribute equity to the deal.
The transaction committee of the company’s board was advised by Morgan Stanley and the law firm Hughes Hubbard & Reed. TPG was advised by Goldman Sachs and Cleary Gottlieb Steen & Hamilton, while the subsidiary of Shanghai Fosun Pharmaceutical was advised by Baker & McKenzie.
