iKang Healthcare announces buyer’s re-evaluation of merger, requests extension

iKang Healthcare Group announced that IK Healthcare Investment Limited and IK Healthcare Merger Limited have informed the Special Committee of the Board of Directors of the Company that Parent and Merger Sub are re-evaluating the commercial viability of the merger contemplated under the Agreement and Plan of Merger, dated as of March 26, 2018, entered into by and among Parent, Merger Sub and the Compan and have requested an extension of the termination date under the Merger Agreement from September 26, 2018 to October 31, 2018. Parent and Merger Sub made a public announcement regarding their current intentions with respect to the Merger and their request for an extension of the termination date under the Merger Agreement. The Special Committee and the Board of Directors of the Company are currently evaluating the request to extend the termination date by Parent and Merger Sub. Due to the absence of any certainty as to whether the Buyer Group will proceed to consummate the Merger, the Special Committee and the Board are currently evaluating the potential risks to the Company if the Merger process is further delayed in light of, among other factors, the upcoming maturity in December 2018 of certain convertible loan agreements entered into by iKang Healthcare Technology Group Co. Ltd., one of our affiliated PRC entities, with an aggregate outstanding principal amount of RMB850 million (equivalent to approximately $124.23 million). The Company currently does not have sufficient cash to repay the Convertible Loans. If the Merger is not consummated or the process is further delayed, the Company may not have adequate time or otherwise be able to obtain sufficient financing to repay and/or refinance the Convertible Loans in amounts or on terms acceptable to the Company, if at all. Accordingly, the Special Committee and the Board have instructed management of the Company to explore potential financing alternatives for the Company in the event that the Merger is not consummated.
https://thefly.com/landingPageNews.php?id=2787585