Ping An Insurance offers to buy remaining stake in healthcare arm at $1.7 bln valuation (updated)

Ping An Healthcare and Technology Co

07/01/2025 15:25

(Adds details on offer and background throughout)
       Jan 7 (Reuters) - China's Ping An Healthcare  1833.HK 
said on Tuesday its parent Ping An Insurance  2318.HK  has made
an offer to buy the remaining stake in the healthcare firm it
does not already own, valuing it at HK$13.23 billion ($1.70
billion).
    Ping An Healthcare will continue to remain listed on the
stock exchange as the Chinese insurance giant has no plans to
privatise the healthcare arm, according to an exchange filing.
    Ping An Healthcare's shareholders will get HK$6.12 in cash
for each share held as part of the offer from Ping An
Insurance's unit, which already owns a 39.41% stake in the
healthcare firm.
    The offer price is at a 2.9% discount to Ping An
Healthcare's last close of HK$6.30.
    In mid-November, Ping An Healthcare proposed a special
dividend of HK$9.70 apiece, which shareholders elected to
receive in the form of shares.
    As a result, Ping An Healthcare will issue 1.04 billion new
shares, of which the parent company's unit will be allotted 699
million new shares, taking its stake to 52.74% and triggering
the mandatory offer clause.

 ($1 = 7.7766 Hong Kong dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Shounak
Dasgupta)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))