(Bloomberg) -- China’s Tahoe Investment Group Co. is weighing a sale of its U.S. health care unit that could fetch $300 million to $400 million, according to people with knowledge of the matter.
Tahoe Investment had preliminary discussions with financial advisers on a potential divestment of Alliance Healthcare Services Inc., an Irvine, California-based company it bought in 2017, the people said. Deliberations are at an early stage and Tahoe Investment could decide to keep the business, said the people, who asked not to be identified as the information is private.
A representative for Tahoe Investment declined to comment.
Tahoe Investment is the major shareholder in Chinese luxury real estate developer Tahoe Group Co. The plan to divest Alliance Healthcare comes after Tahoe Group became China’s first major residential developer to default on a bond in five years as the coronavirus outbreak brought the housing market to a standstill. Last month, China Vanke Co. agreed to buy a 19.9% stake in the developer from Tahoe Investment for 2.43 billion yuan ($351 million).
Tahoe Investment is also considering a sale of its life insurance unit for about $1 billion, Bloomberg News reported in July.
Alliance Healthcare, founded in the 1980s and once listed on Nasdaq, provides outsourced medical services including radiology, oncology and pain management, according to its website. It partners with hospitals, clinics and outpatient centers across the U.S. In 2018, the company opened its first health management center in China’s Fuzhou city, where Tahoe’s headquarters is.
Tahoe, formerly known as Fujian Thai Hot Investment Co., bought a majority stake in Alliance Healthcare from funds managed by Oaktree Capital and ex-company chairman Larry Buckelew in 2016 for about $103 million. The Chinese firm bought the shares it didn’t own in the health care provider in a $75 million take-private deal.
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