Primary Health Care shares have fallen after Chinese health care investor Jangho Group took an 11 per cent stake in the company, valued at $230 million.
Jangho, a China-based group with investments in the Australian healthcare sector, including Vision Eye Institute, increased its interest in Australia’s largest medical centre operator after the market closed on March 17.
At its full year results in August last year, Primary said it would expand its network of medical centres and imaging centres in Australia and is looking to Asia to expand its pathology division, which includes Dorevitch and Laverty.
The company is considering expanding pathology into China, Vietnam and Indonesia.
Primary Health recently reported a 29 per cent increase in net profit to $68.6 million in the first half, thanks in part to gains from the stake sale in Vision Eye and a tax settlement gain.
The company plans to close collection centres to make savings over the next few months after shutting around 100 centres in the first-half.
Primary Health Care shares were 10.0 cents, or 2.63 per cent, lower at $3.70.