Shares of iKang Healthcare Group Inc (ADR) (NASDAQ:KANG) are trading up considerably in the premarket following news that the company has received a ‘going private’ proposal from a group of private equity firms. This group includes the likes of Jiangsu Sanyou Group, Shenzhen Ping An Decheng Investment, Taiping Guofa Capital Management, Sequoia China Investment Management, and Huatai Fund Management.
The offer proposed is $22 per American Depository Share (ADS), a significant premium from Friday’s closing price of $16.77 per share. The Board of Directors has yet to announced a decision on whether they will be accepting this offer, countering it, or simply turning it down. The total value of the offer is in excess of $1.6 billion, and shares are up 15.6% or $2.62 in premarket trading this morning.The stock closed at $16.77 during the last session. It is down 3.68% since April 27, 2015 and is downtrending. It has underperformed by 2.78% the S&P500.
iKang Healthcare Group, Inc. provides preventive healthcare solutions. The company has a market cap of $1.15 billion. The Company’s solutions include a range of medical examinations services, including disease screening, dental services and other services in China. It has 16.49 P/E ratio. The Firm operates through two divisions: medical examinations and other medical services, and dental services.