Hygeia Healthcare buys 100% stake in Etern Group for $268m

The acquisition indirectly holds 98% of Suzhou Yongding Hospital in Jiangsu.

Hong Kong-listed Hygeia Healthcare has conditionally agreed to buy a 100% equity interest in Etern Group from Ascendent Healthcare (Cayman) for a cash consideration of $267.91m (RMB1.73b), the company announced in a bourse filing.

Etern Group indirectly holds 98% equity interest in Suzhou Yongding Hospital, a private for-profit  Class II general hospital in Suzhou City, Jiangsu Province, China. The hospital provides outpatient and inpatient services, and general healthcare services in specialties including oncology, general surgery, internal medicine, and traditional Chinese medicine.

As of end-2020, it had 540 registered beds. The number of inpatient visits was about 20,000, and the number of outpatient visits was around 482,000 for the year ended 31 December 2020.

Upon completion, Etern Group will be Hygeia Healthcare’s direct wholly-owned subsidiary, and the hospital will become its indirect non-wholly-owned subsidiary.

The acquisition will be partly funded by the groups’ internal resources. In order to fund another part of the consideration, Hygeia Healthcare entered into the facility agreement with a bank, which provides for a loan facility in an aggregate principal amount of up to $152m.