Ping An Group plans to acquire the remaining shares of Ping An Healthcare and Technology Co. for HK$13.23 bn ($1.7 bn), according to a filing with the Hong Kong Stock Exchange.
The acquisition will be conducted through Glorious Peace, a British Virgin Islands-incorporated affiliate that Ping An Group owns indirectly. Currently, Ping An Group directly holds 39.41% of Ping An Healthcare’s issued shares.
As part of a scrip dividend scheme, 1.04 bn new shares will be issued as a special dividend, with trading to commence on Jan. 27. Of these, 699 mn shares will be allocated to the offeror.
This will increase the offeror’s ownership from 39.41% to 52.74%, making Ping An Healthcare an indirect non-wholly owned subsidiary of Ping An Group. The group’s financial results will then be consolidated into Ping An Group’s financial statements.
The offeror plans to fund the acquisition through internal cash resources and/or financing. After the deal’s completion, Ping An Healthcare will maintain its current business operations.
The offeror has no plans to redeploy fixed assets or reduce the group’s workforce outside regular operations. Additionally, Ping An Healthcare does not intend to privatize the company, according to the filing.
Ping An Group recently reported strong investment income and higher earnings in its property/casualty and life/health segments, driving a 36.1% increase in nine-month net income.
Net profit attributable to shareholders rose to ¥119.18 bn ($16.73 bn) from ¥87.58 bn. Revenue also grew to ¥861.82 bn from ¥792.53 bn.
