Chindex International, Inc. ("Chindex") (Nasdaq: CHDX), a leading independent American provider of Western healthcare products and services in the People's Republic of China, and Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma"), a leading manufacturer and distributor of western and Chinese medicine and devices in China, today announced that they have consummated a previously-announced stock sale.
The closing is part of the strategic alliance between Fosun Pharma and Chindex to form Chindex Medical Limited (the "Joint Venture"), a joint venture focused on manufacturing and distributing medical devices in China. The Joint Venture would merge and operate Chindex's Medical Products division and certain of Fosun Pharma's medical device businesses in China. The Joint Venture would be owned 51% by Fosun Pharma and 49% by Chindex. The closing of the Joint Venture is subject to the final negotiation and execution of definitive documents.
Today's closing of 933,022 shares of Chindex common stock at $15 per share is one of two separate planned purchases by Fosun Pharma from Chindex of a total of up to 1,990,447 shares, all at $15 per share. Today's closing increases Fosun Pharma's current ownership of Chindex to 3,157,163 shares, representing 19.9% of all outstanding shares of Chindex common stock of all classes. A second transaction for 1,057,425 shares, when aggregated with other Chindex shares owned by Fosun Pharma, would gain Fosun Pharma up to 4,214,588 shares, representing approximately a 25% ownership stake in Chindex, is subject to the consummation of the Joint Venture as well as certain other closing conditions. In connection with the purchases and the Joint Venture, Fosun Pharma has agreed to certain voting and standstill limitations and certain other stockholder limitations. Today's stock sale and the proposed final closing are expected to raise an aggregate of approximately $30.0 million, the net proceeds of which are expected to be used, among other things, to continue expansion of the Company's United Family Healthcare network.