SAN DIEGO--(BUSINESS WIRE)--Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Chindex International, Inc. (NASDAQ: CHDX) breached their fiduciary duties in connection with the planned sale of the Company to a management led group. Chindex provides healthcare services in China.
On February 17, 2014, Chindex announced that it had entered into a definitive merger agreement with a buyer consortium, including Roberta Lipson, the Company’s CEO. Under the terms of the deal, all outstanding shares of Chindex’s common stock will be acquired for $19.50 per share in cash. This represents a transaction value of approximately $369 million. Roberta Lipson will remain as CEO in the newly formed private Company.
The investigation concerns whether Chindex’s board members failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock. Additionally, the investigation will determine whether Chindex’s CEO, Roberta Lipson, took advantage of her position by structuring a deal that pays an unfair price to Chindex shareholders.
Jim Baker, lead analyst for Johnson & Weaver, stated that, “The buyers’ offer appears to be inadequate and not in the best interest of Chindex’s shareholders.” In particular, Baker cited the Chindex Chairman’s statement that, “Chindex has encountered limitations on its ability to unlock projected value without substantial capital expenditures and funding currently unavailable to the Company.” This statement seemed odd to Baker who continued that, “Capital is relatively easy to access in the current market.”
If you are a Chindex shareholder and would like additional information concerning your legal rights, please contact lead analyst Jim Baker (jimb@johnsonandweaver.com) at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California and New York. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
