The Chinese billionaire who last year became the main holder of Community Health Systems shares spent more than $70 million on Friday and Monday to build his firm's stake in the local hospital owner to 22.1 percent.
Tianqiao Chen's Shanda group of companies disclosed its latest buying spree Tuesday morning and said it has now invested nearly $257 million in CHS, which has struggled with high debt and the integration of Health Management Associates and whose stock is - despite a nice 2017 run - down almost 90 percent over the past three years.
In their filing with the Securities and Exchange Commission, Shanda officials - who switched their stance to active from passive early this year, when they owned nearly 14 percent of CHS - didn't discuss any plans to push for change at CHS, which has been unloading hospitals to cut its debt load. In March, the investors noted they have a good relationship with Chairman and CEO Wayne Smith and his team.
CHS officials could not be reached for comment Tuesday.
Shares of CHS (Ticker: CYH) soared more than 20 percent Friday on heavy volume - now explained by Shanda's filing - but have since retreated a good bit. On Tuesday afternoon, they were changing hands at $6.88, down 6 percent on the day but still up about 13 percent from their closing price last Thursday.
Shanda's cost basis in CHS is about $10.10.
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