Benzinga | Jan 4, 2021 04:30PM EST

Aesthetic Medical International Holdings Group Limited Announces Termination of Agreement to Acquire Controlling Interest in Guangdong Hanfei Investment Management Co., Ltd.

Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH) (the "Company" or "AIH"), a leading provider of aesthetic medical services in China, today announced that the Company has terminated the agreement to acquire a 51% equity interest in Guangdong Hanfei Investment Management Co., Ltd. ("Hanfei"), previously announced on July 14, 2020. The termination was a result of amicable negotiation of the parties following Hanfei's failure to meet the agreed-upon performance target largely due to the impact from the COVID-19 pandemic.

Dr. Zhou Pengwu, the Chairman and CEO of the Company, commented, "We sincerely regret that the current market and economic condition caused by the COVID-19 pandemic does not set the right stage for the acquisition of Hanfei, and we have determined that it is in the best interest of our shareholders to call off the transaction at this time. Our overall strategy, however, remains steadfast, and we will actively implement our acquisition strategy. Going forward, we will continue to investigate and pursue attractive opportunities in strategic investment and acquisition to address the growing demand for aesthetic medical services nationwide and generate greater shareholder value."