iKang Healthcare Group, Inc. Extends Shareholder Rights Plan
November 28 2016 - 7:23AM
iKang Healthcare Group, Inc. (“iKang” or the “Company”)
(Nasdaq:KANG), announced today that its Board of Directors has
unanimously approved the extension of its Rights Agreement,
presently scheduled to expire on December 2, 2016, for another
year.
As the Rights Agreement was designed to ensure
that all shareholders of the Company receive fair and equal
treatment in the event that an unsolicited attempt is made to
acquire the Company outside of the process led by a special
committee of independent directors, the Board and the special
committee have determined that it is advisable and in the best
interests of the Company and its stockholders to extend the Rights
Agreement for an additional year, as the special committee
continues to consider and evaluate the proposal submitted by
Yunfeng Capital to acquire the Company.
About iKang Healthcare Group,
Inc.
iKang Healthcare Group, Inc. is the largest
provider in China’s fast growing private preventive healthcare
services market, accounting for approximately 13.6% of market share
in terms of revenue in calendar year 2014.
Through iKang’s integrated service platform and
established nationwide network of medical centers and third-party
service provider facilities, the Company provides comprehensive and
high quality preventive healthcare solutions, including a wide
range of medical examination services and value-added services
including disease screening and other services. iKang’s customers
are primarily corporate customers who contract with the Company to
provide medical examination services to their employees and
clients, and pay for these services at pre-negotiated prices. iKang
also directly markets its services to individual customers. In the
fiscal year ended March 31, 2016, the Company served a total of 4.6
million customer visits under both corporate and individual
programs.
As of November 28, 2016, iKang’s
nationwide network consisted of 96(1) self-owned centers covering
28 of the most affluent cities in China, namely Beijing, Shanghai,
Guangzhou, Shenzhen, Chongqing, Tianjin, Nanjing, Suzhou, Hangzhou,
Chengdu, Fuzhou, Changchun, Jiangyin, Changzhou, Wuhan, Changsha,
Yantai, Yinchuan, Weihai, Weifang, Shenyang, Xi’an, Wuhu, Guiyang,
Ningbo, Jinan and Foshan as well as Hong Kong. The Company has also
supplemented its self-owned medical center network by contracting
with approximately 400 third-party service provider facilities in
over 150 cities, which include select independent medical
examination centers and hospitals across all of China’s provinces,
creating a nationwide network that allows iKang to serve its
customers in markets where it does not have self-owned medical
centers.
(1) Among the 96 self-owned medical centers, 2
medical centers are currently operated primarily by the minority
shareholders of these medical centers or their parent company.
Forward-looking statements
This press release contains forward-looking
statements. These statements, including management quotes and
business outlook, are made under the “safe harbor” provisions of
the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “estimate,” “project,” “predict,” “believe,” “expect,”
“anticipate,” “intend,” “potential,” “plan,” “goal” and similar
statements. iKang may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Such
statements involve certain risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in the forward-looking statements. These forward-looking statements
include, but are not limited to, statements about: the Company’s
goals and strategies; its future business development, financial
condition and results of operations; its ability to retain and grow
its customer base and network of medical centers; the growth of,
and trends in, the markets for its services in China; the demand
for and market acceptance of its brand and services; competition in
its industry in China; relevant government policies and regulations
relating to the corporate structure, business and industry;
fluctuations in general economic and business conditions in China.
Further information regarding these and other risks is included in
iKang’s filing with the Securities and Exchange Commission. iKang
undertakes no duty to update any forward-looking statement as a
result of new information, future events or otherwise, except as
required under applicable law.
IR Contact:
iKang Healthcare Group, Inc.
Christy Xie
Director of Investor Relations
Tel: +86 10 5320 8599
Email: ir@ikang.com
Website: www.ikanggroup.com
FleishmanHillard
Ruby Yim
Email: ikang@fleishman.com
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