China-based Concord Medical Services Holdings has signed an agreement to sell its 52% equity stake in Chang’an Hospital for CNY398m ($64.8m).
Concord Medical Services Holdings signed the agreements through its subsidiaries.
The deal includes the sale of ownership interests in Chang’an CMS International Cancer Center (CCICC), a specialised cancer diagnosis and treatment centre, established between Concord Medical and Chang’an Hospital in July 2010.
Concord Medical Services Holdings chairman Dr Jianyu Yang said: "Our divestment of Chang’an Hospital allows Concord to fully concentrate on our efforts to build a nationwide network of diagnosis and treatment centres and specialised cancer hospitals.
"The proceeds from this transaction will be used to fund the construction of our current projects, as well as to pay off some current debt.
"Going forward, we expect to open five free-standing radiotherapy cancer centres and to begin construction on one to two level-III premium cancer specialty hospitals in 2015."
Concord Medical will continue to support Chang’an Hospital on hospital management, oncology department and talent training after the transaction closes.
Subject to relevant government approvals, the transaction is expected to be completed by the end of 2014. Concord Medical operates specialty cancer hospitals, as well as radiotherapy and diagnostic imaging centres in China.
The company’s network includes 141 centres with 81 hospital partners that spans 56 cities and 25 provinces and administrative regions in the country, as of 30 September 2014.