Concord Medical Services – CCM – Closed acquisition of 52% equity ownership in Chang’an Hospital

Concord Medical Services Holdings Limited (NYSE: CCM), a leading specialty hospital management solution provider and operator of the largest network of radiotherapy and diagnostic imaging centers in China, announced that it has closed the acquisition of 52% equity ownership in Chang’an Hospital, a leading non-public general hospital located in Xi’an, Shaanxi Province.

The acquisition will help CCM become a leading hospital management group in China, with over 1000 hospital beds and 130 radiotherapy and diagnostic centers nationwide.  The Company expects to add more specialty oncology hospitals in the near future, and the Company has already submitted applications for relevant licenses for two planned hospitals which are currently under government review.

CCM announced the signing of a definite agreement in connection with the acquisition of 52% equity ownership in Chang’an Hospital on March 22, 2012.  Since then, CCM has received all necessary government approvals including New Business License of Chang’an Hospital, and completed all registration procedures, including Capital Verification Report, Share Ownership Report, and Business Registration Change Report. Chang’an Hospital will convene a board meeting, at which the board will appoint the new directors selected by the Company effective as of July 1, 2012. The financial results of Chang’an Hospital will then be subject to consolidation by the company starting from the third quarter of 2012.

“The successful closing of this transaction is a significant accomplishment and an important milestone in the Company’s history. It is the first step in the Company’s strategic transformation into a hospital management company,” said Dr. Jianyu Yang, CCM’s Chairman and CEO.  “The current healthcare reform in China has provided us with great development opportunities.  We appreciate the support and advice of our investors and shareholders to help us achieve the strategic transformation.”

The Company expects to achieve revenue from lease and management services between RMB118 million to RMB125 million (US$18.7 million to US$19.8 million) in the second quarter of 2012, compared to RMB101.7 million (excluding revenue contribution from Chang’an Hospital) during the same quarter of 2011, representing 16% to 23% year-over-year growth. The Company also reiterates its revenue target of RMB590 million to RMB630 million for the 2012 fiscal year.

About Concord Medical – CCM

Concord Medical Services Holdings Limited (CCM) operates the largest network of radiotherapy and diagnostic imaging centers in China, measured by revenues and the number of centers in operation. As of March 31, 2012, CCM operated a network of 130 centers with 74 hospital partners that spanned 51 cities and 24 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, Concord Medical provides radiotherapy and diagnostic imaging equipment and manages the daily operations of these centers, which are located on the premises of its hospital partners. CCM also provides ongoing training to doctors and other medical professionals in its network of centers to ensure a high level of clinical care for patients.

More Posts by this author

• Gold Prices Edge Lower; Silver Prices also Sharply Lower
• Stock Futures Point to a Lower Start
• Gold Prices Edge Lower
• Stocks End on a Mixed Note
• Stocks Marginally Lower after Fed Policy Statement
• Gold Prices Lower ahead of Fed Decision; Silver Prices in Green
• Quest Software – QSFT – Amended its previously announced merger agreement with affiliates of Insight Venture Partners

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.