Newport Beach-based Alliance HealthCare Services Inc. said today that Chinese investor Fujian Thai Hot Investment Co. will buy 5.5 million shares of its stock for $102.5 million and become its majority shareholder.
Alliance provides diagnostic imaging and radiation therapy in both mobile and fixed-site forms.
Fuzhou, China-based Fujian Thai Hot will own 51.5% of Alliance’s common stock after the transaction, which is expected close in the fourth quarter.
Alliance said in a release it would appoint Kisum Wong, Fujian Thai Hot’s founder, along with two other directors associated with the investor, to its board to replace current directors Michael Harmon, Curtis Lane and Aaron Bendickson, who will resign their positions.
Alliance released its news after the market closed Wednesday. Its shares had risen about 15% in a run-up this week to the news of the investment breaking but in midday trading Thursday were down more than 20% to $13.25 and a $140 million market cap.
