<Research Report>BNP Paribas: PHOENIXHEALTH Invested by China Res; Becomes Largest PRC Hospital Group
BNP Paribas, in its report, said on 8 April, PHOENIXHEALTH (01515.HK) announced that the company will acquire main hospital assets from China Resources Healthcare Group (CRHG), including 35 hospitals and 3 senior care institutions with total annual income of RMB2.4 billion.
Upon the transaction, the new company will become the largest hospital group in mainland China.
The board of the new company will include 4 directors from CRHG and 3 management from Phoenix Health.
The group plans to issue 463 million consideration shares to CRHG at the issue price of $8.04/share, and BNP Paribas suggests this is an attractive and can boost the share price, but with limited disclosure, the target price $13.8 is unchanged and the rating Buy is kept.
Source: AAStocks Financial News