(Yicai Global) May 5 -- Hengkang Medical Group Co. [SHE:002219], through a wholly-owned subsidiary in Australia, is set to acquire a 70 percent stake in the country's second largest medical imaging company, PRP Diagnostic Imaging Pty Ltd.
The group has reached an agreement with the Australian firm's 49 shareholders, it said yesterday. The price of the deal is estimated around CNY1.7 billion (USD247 million), or up to CNY1.74 billion based on yesterday's yuan-Australian dollar exchange rate. The trading price is primarily based on comparable acquisitions in the Australian medical service industry, the statement added.
PRP has 29 image diagnostic centers in Australia's southeastern state of New South Wales providing nuclear magnetic resonance imaging and 20 other diagnostic services, Hengkang said, adding that the firm boasts strong leadership and a wealth of experience in remote diagnosis.
The acquisition will help Hengkang set up an independent image diagnostic center in China, it said, and offer high-end customers remote diagnosis from domestic and overseas doctors in cases which are difficult to diagnose.