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Li Ka-shing-backed Well Health to buy CRH Medical for nearly $300 million

February 08, 2021 at 11:37 am EST

(Reuters) - Canadian digital healthcare company Well Health Technologies Corp said on Monday it would buy CRH Medical Corp for $292.7 million to expand into the United States, in a deal partly funded by its billionaire investor Li Ka-shing.

The move comes days after a unit of the Hong Kong tycoon's CK Group agreed to buy two wind farms in British Columbia, marking its first purchase of a Canadian renewables project.

CRH Medical shareholders will get $4 per share in cash, representing a premium of about 83% to the company's shares' closing price on Friday.

U.S.-listed shares of CRH Medical were trading 80% higher at $3.94, while its Canada-listed shares were at C$5.02.

Well Health said the deal would be funded through a credit facility and cash on hand, with the company raising C$295.5 million ($231.75 million) through an equity offering to a group of investors that includes Li.

Well Health did not disclose details on Li's stake in the company after the deal. Its shares, listed on Toronto Stock Exchange, rose 18% to C$9.46.

CRH Medical provides gastroenterologists in the United States with products and services for the treatment of gastrointestinal diseases, including anesthesia services at 69 ambulatory surgical centers in 13 states.

($1 = 1.2751 Canadian dollars)

(Reporting by Amruta Khandekar; Editing by Aditya Soni)

Stocks mentioned in the article

Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
CRH MEDICAL CORPORATION	4.99 CAD	+0.40%	-.--%	296M
WELL HEALTH TECHNOLOGIES CORP.	3.59 CAD	+0.28%	+1.99%	645M
S&P/TSX COMPOSITE INDEX	21,969 PTS	+0.38%	+0.74%	-

Li Ka-shing

Richest man in Asia and eleventh global fortune according to Forbes in 2011, Li Ka-shing is the boss of conglomerates Hutchison Whampoa, Cheung Kong Holdings and Watson Group, the world leader in port management.

At 17 years old, Li Ka-shing left his studies to sell watches in the store of his uncle. Quickly he becomes the best seller and at the age of 19, he is hired by a company to sell various metal items. Seller the day, he also works the night to monitor the manufacturing process. This job allows him to control the operation of a factory and the product’s commercialization.

In 1947, Li Ka-shing borrows some money to his family and begin selling artificial flowers. He creates a factory for the production and hires the best salesmen. The notoriety of the firm increases and Li Ka-shing signs profitable contracts. In a few years,he becomes the biggest provider of artificial flowers in Asia.

In the sixties, the Cultural Revolution moves lot of people to leave the country and the real estate’ price drop sharply. Li Ka-shing is convinced that prices will go up so he decides to buy a lot of lands. In 1971, he creates the real estate company Cheung Kong.

In a few years, the businessman appears like “the strong man of the real estate” in Hong Kong. Front of the globalization, he begins to invest in ports.

In 1979, Li Ka-shing takes the control of Hutchison Whampoa Limited which he holds 22%. From that time on, starts a rapid expansion which allows HWL to establish in Rotterdam and Panama. The group becomes the first global port operator.

Since, Li Ka-shing has continued to increase investment in areas such as telephony. In 1999, he sold his 48% shares in Orange to the group Mannesman for nearly 15 billion dollars.
First investor in the 3G, he is the leader in this area in Europe.

He has also invested $ 120 million in the social network Facebook (he holds 0.8%).

In 2005 he bought the perfumery chain Marionnaud. He also holds the airline Air Canada.

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