IKang Healthcare Gets 'Going Private' Proposal From CEO-led Group For $17.80/ADS

(RTTNews) - iKang Healthcare Group Inc. (KANG) said Monday that its board has received a non-binding proposal letter, dated August 31, 2015, from Ligang Zhang, founder, chairman and chief executive officer of iKang and certain of his affiliated entities, and FV Investment Holdings, proposing a "going-private" transaction to acquire all of the outstanding Class A common shares and American depositary shares of the Company not already owned by the Buyer Group for US$17.80 in cash per American depositary share of the Company.

The offer price represents a premium of 10.8% to the closing trading price of the Company's ADSs on August 28, 2015, and a premium of 18.0% and 9.7% to the volume-weighted average closing price of the Company's ADSs during the last 7 and 30 trading days, respectively.

According to the proposal letter, the Buyer Group intends to fund the consideration payable in the Transaction with a combination of debt and/or equity capital, and rollover equity in the Company.

The Board intends to form a special committee consisting of independent directors to consider this proposal.

The Board cautioned the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction.