(Reuters) - Canadian digital healthcare company Well Health Technologies Corp said on Monday it would buy CRH (LON:CRH) Medical Corp for $292.7 million to expand into the United States, in a deal partly funded by its billionaire investor Li Ka-shing.
The move comes days after a unit of the Hong Kong tycoon's CK Group agreed to buy two wind farms in British Columbia, marking its first purchase of a Canadian renewables project.
CRH Medical shareholders will get $4 per share in cash, representing a premium of about 83% to the company's shares' closing price on Friday.
U.S.-listed shares of CRH Medical were trading 80% higher at $3.94, while its Canada-listed shares were at C$5.02.
Well Health said the deal would be funded through a credit facility and cash on hand, with the company raising C$295.5 million ($231.75 million) through an equity offering to a group of investors that includes Li.
Well Health did not disclose details on Li's stake in the company after the deal. Its shares, listed on Toronto Stock Exchange, rose 18% to C$9.46.
CRH Medical provides gastroenterologists in the United States with products and services for the treatment of gastrointestinal diseases, including anesthesia services at 69 ambulatory surgical centers in 13 states.
($1 = 1.2751 Canadian dollars)