Capitol Health Ltd (ASX:CAJ) will partner with China’s Sunshine Insurance Group to provide tele-radiology services to the 2,000 bed Sunshine Union Hospital in Weifang, Shandong Province, China.
The agreement with Sunshine group is part of Capitol’s broader strategy to participate in the Chinese diagnostic imaging market.
This provides a platform for Melbourne based Capitol Health to expand its medical diagnostic imaging services, which operates 70 clinics throughout Victoria and New South Wales.
Sunshine is one of China’s largest insurance companies with a capital value of more than RMB185 billion, or A$39 billion.
The tele-radiology services are expected to be ongoing and will involve a team from Sunshine Hospital attending Capitol’s Australian facilities and Capitol’s team attending the Sunshine facility.
The agreement follows Capitol’s recently announced partnership with CITIC Pharmaceutical in China to provide design, consulting and clinic management services.
Another opportunity has opened for Capitol to participate in future joint ventures with CITIC’s proposed network of diagnostic imaging centres in China.
Capitol has raised $50 million in a recent offering of unsecured 4-year notes at a fixed coupon of 8.25% per annum maturing in May 2020. The proceeds will be used to pay down debt.
The company’s revenue has increased 57% to $77 million for the 6 months ended 31 December 2015, compared to $49 million for the same period in 2014.
Capitol’s share price has increased by more than 10% during the past one month.
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