Shearman & Sterling is advising Hong Kong-listed Phoenix Healthcare on its US$480 million acquisition of certain hospital businesses of China Resources Healthcare Group (CR Healthcare), one of the largest state-owned enterprises in China’s healthcare industry. CR Healthcare will become a controlling shareholder of Phoenix Healthcare.

Phoenix Healthcare is one of the largest private hospital groups in the PRC, comprising 60 medical institutions with approximately 5,780 beds in operation in Beijing, Tianjin and Hebei.  

CR Healthcare is a wholly owned subsidiary of China Resources (Holdings) Co., Ltd., one of the largest state-owned enterprises under the administration of the State-owned Assets Supervision and Administration Commission of the State Council.

The transaction involves a connected transaction under the Hong Kong Listing Rules, as well as a whitewash waiver application under the Hong Kong Takeovers Code.