Gushengtang (02273.HK): Subsidiary to Acquire Controlling Stakes in Shahe Hospital and Beijing Hongyang Hospital
Gushengtang Holdings Limited (02273.HK) announced a voluntary announcement regarding the acquisition of controlling stakes in two medical institutions. The company's subsidiary, Beijing Gushengtang Health Management Co., Ltd. (Gushengtang Beijing), recently entered into Equity Transfer Agreement A with the ultimate beneficial owner of Beijing Changping Shahe Integrated Chinese and Western Medicine Hospital (Shahe Hospital), pursuant to which Gushengtang Beijing agreed to acquire and the seller agreed to sell the controlling stake in Shahe Hospital upon satisfaction of the conditions precedent.
The board also announced that Gushengtang Beijing entered into Equity Transfer Agreement B with the shareholders of Beijing Hongyang Chinese Medicine Hospital Co., Ltd. (Beijing Hongyang Hospital) and the ultimate beneficial owner, pursuant to which Gushengtang Beijing agreed to acquire and the sellers agreed to sell the controlling stake in Beijing Hongyang Hospital. Upon completion of the acquisitions, both hospitals will become subsidiaries of the company, and their financial results will be consolidated into the group's consolidated financial statements.
Shahe Hospital is a medical institution mainly providing integrated Chinese and Western medicine services in Beijing's Changping District. Beijing Hongyang Hospital is a medical institution mainly providing Chinese medicine services in the same district.
The acquisitions align with the group's expansion strategy of enlarging its offline medical institution network through acquisitions, and are expected to enhance its market share in Beijing and create synergies with the group's other offline medical institutions and online medical platforms. The consideration was determined through fair negotiations, referencing the historical performance, qualifications, resources, and prospects of the hospitals. The consideration will be funded by the net proceeds from the company's placement of shares and issuance of convertible bonds, as well as the group's idle funds.
The directors confirmed that the hospitals and sellers, and their respective ultimate beneficial owners, are independent third parties. Therefore, the acquisitions do not constitute connected transactions under Chapter 14A or notifiable transactions under Chapter 14 of the Listing Rules.
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