Guangdong Kanghua Healthcare Co., Ltd. (SEHK:3689) signed an agreement to acquire 60% stake in Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. from Dongguan Jiade Healthcare Investment Co., Ltd for CNY 270 million on June 22, 2018. Guangdong Kanghua will pay CNY 81 million within 7 days of signing the agreement as a deposit, CNY 54 million at completion, CNY 54 million within one month after completion and CNY 81 million within 8 months from completion. The consideration shall be payable in accordance with the terms and conditions of the agreement, out of which CNY 80 million will be funded by a portion of the IPO net proceeds raised on November 8, 2016 that was allocated for the purpose of expanding Guangdong Kanghua’s healthcare operations in China, and CNY 190 million will be funded by the internal financial resources of Guangdong Kanghua. Zhonglian Cardiovascular Hospital will become a non-wholly-owned subsidiary of Guangdong Kanghua after the deal. Chongqing Kanghua Zhonglian Cardiovascular reported net loss after tax of CNY 43.6 million and net liabilities of CNY 21.6 million as of December 31, 2017. The parties agreed that, upon completion, Guangdong Kanghua shall have the right to restructure the board of directors of Zhonglian Cardiovascular Hospital and amend the relevant constitutional documents. Guangdong Kanghua shall have the right to appoint at least two-third of the members of the board of directors of Zhonglian Cardiovascular Hospital. Deal is subject to each party having obtained the necessary approvals for the execution and performance of the agreement, Dongguan Jiade Healthcare having confirmed in writing that at least two-third of the members of the board of directors of Zhonglian Cardiovascular Hospital will be appointed by Guangdong Kanghua, Guangdong Kanghua having completed due diligence and Zhonglian Cardiovascular Hospital being in possession of the relevant licenses, qualifications and certificates that have passed annual inspection. In the event that Guangdong Kanghua reasonably concludes that Dongguan Jiade Healthcare and Zhonglian Cardiovascular Hospital are not able to comply with or fully satisfy the conditions precedent as set out in the agreement, Guangdong Kanghua shall have the right to terminate the agreement. Completion shall take place on the fifth business day from the date on which all of the conditions precedent have been satisfied or waived and is expected to be July 31, 2018. Guangdong Kanghua Healthcare Co., Ltd. (SEHK:3689) completed the acquisition of 60% stake in Chongqing Kanghua Zhonglian Cardiovascular Hospital Co., Ltd. from Dongguan Jiade Healthcare Investment Co., Ltd on July 31, 2018.