Reporter | Jin Miao
On the eve of the Spring Festival of the Year of the Ox, New Frontier Medical, the parent company of United Family Hospital, issued an announcement that the company’s board of directors received a non-binding privatization offer issued by a consortium of buyers including New Frontier Public Holding Limited on February 9, 2021.
The purchase of all issued common stock at a price of $12 per share will privatize the company
After the transaction is completed, the company will become an unlisted company and its common stock will be delisted from the New York Stock Exchange
On the day of the announcement, the market said that Xinfeng Medical may prepare for the future return to H shares because of the poor liquidity of US stocks and the low valuation of the company
When the report for the third quarter of 2020 was disclosed, Xinfeng Medical had stated its plan for a secondary listing in Hong Kong
Jiemian News went back to the A-share and H-share plans and sought verification from the United Family Department.
As of press time, no response was received
In 2018, Xinfeng Tianyu landed on the New York Stock Exchange in the form of "special purpose acquisition companies".
Such companies can find non-listed companies after listing and financing, and they will be included in listed companies after completing mergers and acquisitions within 24 months
In July 2019, former United Family shareholders, including Fosun, announced a joint sale of United Family equity to Freshwind for a total transaction value of approximately US$1.
United Family was valued at US$1.
3 billion at the time
The transaction was completed at the end of 2019, and Xinfeng Tianyu was renamed Xinfeng Medical
As a representative of high-end non-public medical services in China, United Family has always been regarded as the "sweet pastry" in the non-public medical field, but in fact, the United Family is currently at a loss
According to its report for the third quarter of 2020, the company's revenue in the third quarter was 630 million yuan, a year-on-year increase of 3.
7%, and its net loss was reduced to 69.
825 million yuan in the same period of the previous year
Generally speaking, U.
stocks are not cold about the domestic medical reform story.
This is also the main reason why companies that have developed under the background of the medical reform, such as United Family, Yiyao.
com and other medical services, and medical e-commerce, are trading thinly in U.
In the past year, Hong Kong stocks of a number of domestic private medical companies, including Hygeia and Grace Medical, plus the previously listed Jinxin Fertility and Kangning Hospitals, have become important listing locations for domestic non-public medical services
On the one hand, the barriers to listing of medical companies in Hong Kong are smaller than those of A-shares, and they are suitable for medical service organizations with low net assets and light assets
The Hong Kong market is more familiar with the market changes brought about by the domestic medical reform, and both valuation and liquidity are better than US stocks
According to the market-sales ratio valuation method (PS), the current Hong Kong-listed Hygeia and Jinxin Reproductive Markets have sales of 19.
08 and 33.
83, respectively, while the market-sales ratio of Xinfeng Medical is 2.
The underestimated asset value is due to the privatization and An important factor that may return to AH shares in the future
In addition, although United Family's revenue increased from 1.
68 billion to 2.
45 billion from 2016 to 2019, its net profit continued to decline, with a loss of 459 million yuan in 2019
In 2020, due to the impact of the new crown epidemic, the flow of medical institutions has dropped significantly, and the entire non-public medical field is facing financing difficulties.
Therefore, many non-public medical institutions are lining up to raise funds for IPO, and the liquidity of U.
stocks is difficult for additional issuance.