China Renji Medical Group finalises 2 for 1 rights issue

Medical centre management company China Renji Medical Group on Tuesday finalised a two for one rights issue to help finance future expansion plans.

The firm expects to raise HK$96m from the rights issue and will use approximately HK$20m to support the acquisition of an unnamed China based fitness centre group. The outstanding balance will be reserved for future investments, China Renji wrote in a stock exchange announcement.

The rights issue is priced at 27 Hong Kong cents a share.

The company operates 14 medical check-up centres based inside mainland Chinese hospitals.

China Renji recorded first half net profits of HK$18.9m and holds HK$170m in outstanding interest bearing loans and bonds.