KKR & Co. L.P. (NYSE:KKR) will be selling down Hong Kong listed Far East Horizon. The move comes as an attempt by KKR to raise $200 million in share placement. 195 million shares of Far East Horizon are being sold by KKR at the price range of HKD7.9-HKD8.15. The selling price represents a discount of 3% to 6%.
KKR’s $200million divestment comes after a much smaller divestment of $65 million in April when GIC, the Singaporean Sovereign Wealth Fund sold stakes in Far East Horizon. The sale of shares by both KKR and GIC were timed to take advantage of an uptick in share prices of Far East. According to some analysts, there is still some room left in the rally of Far East as the company is making inroads into the healthcare sector.
A total of forty accounts took part in the deal. The deal included hedge funds and long only accounts, some of whom already owned stocks. The vast majority of buyers were from Asia, though there were some from America too.
After the deal, the share of KKR & Co. L.P. (NYSE:KKR) in Far East has reduced to 12% from 17.9%. The controlling shareholder in Far East is owned by Sinochen Group, which owns 28% of the company. In October 2009, KKR and GIC had acted in tandem to CICC to purchase 30% stake in Far East for $160 million
Far East has gained 63.7% year on year and has rapidly increasing profitability. The stock is up 9.8% year on year though it increased by 37.6% mid-March in the space of just a month.
Since 2014, Far East has spent Rmb500 million to get five specialist hospitals with 1,065 beds. The company has announced plans to acquire 30 specialist hospitals with 10,000 beds by 2020. The main business of Far East is financial leasing, and the company is China’s largest non bank affiliated leasing company.
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