Beijing's Genertec Universal Medical Group Co. Ltd. and state-owned China XD Group Co. Ltd. agreed to form a joint venture worth 1 billion Chinese yuan.
The healthcare services provider, through its investment holding unit Wiseman Hospital Investment Management (Tianjin) Co. Ltd., will contribute 550 million yuan in cash for 55% of the joint venture. China XD Group will contribute 450 million yuan in the form of assets from its Xi'an XD Group Hospital, and own the remaining 45% of the venture.
The joint venture will replace China XD Group as Xi'an XD Group Hospital's promoter, and support the 900-bed hospital's development.
Genertec Universal said the joint venture boosts its value, service portfolio and competitiveness. The company, which is controlled by a state-owned enterprise, said the transaction is in line with national policies of reform on state-owned enterprises-affiliated hospitals.
As of Dec. 20, US$1 was equivalent to 6.89 Chinese yuan.