What Mr. Chen and his group of companies paid ranged from $3.98 to $4 per share, slightly higher than the $3.91 to $3.99 per share Mr. Chen paid earlier this month and much lower than the $6.10 to $7.10 he paid in August for 9.8 million shares of CHS.
Mr. Chen, a pioneer in China’s online gaming industry, began upping his stake in CHS in 2016. Although he controls enough to be considered an activist investor, Mr. Chen said in a March SEC filing that he has a “good relationship” with CHS’ executives and will work with them on the “ongoing turnaround strategy.”
To improve its finances and reduce its heavy debt load, CHS put a turnaround plan into place in 2016. As part of the initiative, the company announced plans this year to sell off 30 hospitals. CHS completed its 30-hospital divestiture plan Nov. 1, and the company expects to sell another group of hospitals with combined revenue of $2 billion, Chairman and CEO Wayne Smith said during a third quarter earnings call.
CHS ended the third quarter of this year with a net loss of $110 million on revenues of $3.67 billion. That’s compared to the same period of 2016, when the company recorded a net loss of $79 million on revenues of $4.38 billion.
More articles on healthcare finance:
Chicago safety-net hospital will slash employee pay, cut jobs to survive
Why HCA will fare better than Tenet and CHS under the GOP tax plan
8 health systems with strong finances
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.