China’s Sovereign Wealth Fund to Purchase Stake in IKang

China’s sovereign wealth fund agreed to pay $40 million for a stake of about 4.6 percent in iKang Healthcare Group Inc., the Beijing-based provider of preventive care that filed earlier this month for an initial public offering in the U.S.

China Investment Corp., which had about $575 billion in assets as of January, will buy iKang shares at the IPO price, according to documents filed yesterday with the U.S. Securities and Exchange Commission.

IKang describes itself as the largest provider in China’s private preventive health-care services market, with a nationwide network of 42 medical centers. The company generated 79 percent of its revenue during the first nine months of last year by contracting to provide examination services to the employees and clients of corporate customers.

In April, Goldman Sachs Group Inc. and the Government of Singapore Investment Corp., another sovereign wealth fund, agreed to invest about $100 million in iKang.

Best Investment Corp., a unit of China Investment, would receive 1.54 million iKang Class A shares, assuming the health-care company’s American depositary shares sell for $13 each in the IPO. The Class A shares, which aren’t publicly traded, each equal two iKang American depositary shares, which will be listed on the Nasdaq Global Select Market after the offering.

To contact the reporter on this story: Miles Weiss in Washington at mweiss@bloomberg.net

To contact the editors responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net Josh Friedman, Pierre Paulden

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