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China Health Group unit to acquire majority stake in Anping Bo'ai Hospital

China Health Group Ltd. said that its unit Zhongweikangrong Hospital Management Co. will acquire a 70% stake in Anping Bo'ai Hospital.

The company agreed to make a cash payment of 4.2 million yuan in exchange for a majority stake in the not-for-profit hospital.

China Health Group will pay 2.5 million yuan and 500,000 yuan upfront to Sang Shiwen and Han Jianbin, owners of the Anping Bo'ai Hospital, respectively.

The remaining payment of 1.2 million yuan — 800,000 yuan to Shiwen and 400,000 yuan to Jianbin — is subject to a complete reorganization of Anping Bo'ai Hospital from a private nonenterprise unit to a for-profit limited liability company and approval from the shareholders of China Health Group.

After the acquisition of the 70% stake, China Health Group will pay 1.8 million yuan in advance to Shiwen as the consideration for the future acquisition of the remaining 30% equity interests of Anping Bo'ai Hospital.