New Frontier Health Corporation (NYSE: NFH) announced that its board of directors has received a preliminary non-binding proposal letter, sending its shares up 11.55% at $10.82.
The premium healthcare services provider said that the buyer group plans to acquire all outstanding ordinary shares that not already beneficially owned by members of the buyer group or their affiliates in a going-private transaction for $12 per share in cash, which is 10.9% higher than today’s trading price. In addition, the buyer group plans to finance the proposed transaction with equity capital from existing members of the buyer group and potential additional equity investors and debt capital.
The proposal is provided from New Frontier Public Holding Ltd., Carnival Investments Limited, Max Rising International Limited, Ying Zeng, Vivo Capital Fund IX, L.P., NF SPAC Holding Limited and Sun Hing Associates Limited, Brave Peak Limited, Aspex Master Fund, Smart Scene Investment Limited, and LY Holding Co., Limited, Nan Fung, Shimao, Aspex and Hysan, according to New Frontier Health.
After the proposed transaction is completed, the company will become a privately held company and its common stock will be delisted from the New York Stock Exchange.
In the third quarter of 2020, New Frontier generated 626.6 million yuan in revenue, up 14.4% year-over-year. Net loss decreased from the same period in 2019 to 69.8 million yuan, according to the company.
New Frontier, formerly a blank check company, announced the acquisition of UFH in late July 2019. It bought the private healthcare operator from shareholders including affiliates of TPG Capital Asia and Fosun Pharma.