It's Alibaba's Game Now: "Meh" Is Possible

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Event-Driven

IKang Healthcare Group (ADR) / Event-Driven

<p>iKang announced the receipt of a non-binding offer US$20-25/ADS cash from PE firm Yunfeng Capital. The offer tops Chairman Zhang's offer of US$17.80/ADS, and "ties" with Meinian Onehealth's US$25/ADS offer.  The announcement and offer letter are attached, so we will focus on several brief highlights:</p><ol><li>Valuation -- The letter notes that the offer values the company at an EV/EBITDA multiple of 18.5-22.5x. As we have written before, we think that fair value approximates US$25/ADS and that precedent…</li></ol>

iKang announced the receipt of a non-binding offer US$20-25/ADS cash from PE firm Yunfeng Capital. The offer tops Chairman Zhang's offer of US$17.80/ADS, and "ties" with Meinian Onehealth's US$25/ADS offer.  The announcement and offer letter are attached, so we will focus on several brief highlights:Valuation -- The letter notes that the offer values the company at an EV/EBITDA multiple of 18.5-22.5x. As we have written before, we think that fair value approximates US$25/ADS and that precedent…

Meinian Onehealth Healthcare H (002044 CH)

IKang Healthcare Group (ADR)

A New Offer: Has Alibaba Switched Sides?