Lippo Group's OUE Lippo Healthcare, or OUELH, the healthcare subsidiary of Singapore-listed property developer and owner OUE Limited, announced the completion of a private placement of some 565.5 million new ordinary shares to Japanese general trading firm Itochu Corporation, the company said in a statement on Monday (19/02). (Photo courtesy of OUELH)
OUE Lippo Healthcare Seeks to Expand After Wrapping Up Strategic Investment Deal With Itochu
BY :MUHAMAD AL AZHARI
FEBRUARY 19, 2018
Jakarta. Lippo Group's OUE Lippo Healthcare, or OUELH, the healthcare subsidiary of Singapore-listed property developer and owner OUE Limited, announced the completion of a private placement of some 565.5 million new ordinary shares to Japanese general trading firm Itochu Corporation, the company said in a statement on Monday (19/02).
The private placement, worth S$78.8 million ($60 million), makes Itochu Corporation a strategic investor in OUELH -- holding 25.3 percent of all shares -- through its indirect wholly-owned subsidiary of Browny Healthcare. The Lippo Group, through OUE, continues to be the biggest investor, holding 64.4 percent of all shares.
OUELH has healthcare portfolios across Singapore, Malaysia, China, Japan and Australia, though the company has been reportedly seeking to expand in China, Japan and Southeast Asia as a whole. Itochu is one of the largest and most diversified trading companies in the world, with a market capitalization of over $30 billion.
"With the completion of this placement, OUELH is set to strengthen and expand its regional presence, including in China as well as in new markets in Southeast Asia," OUELH said in Monday's statement.
"Healthcare expenditures in Asia are rapidly rising, driven by growing affluence, technological developments and ageing populations. OUELH intends to expand into this high potential market by leveraging the strengths of its major shareholders - OUE and Itochu," the statement said.
OUELH will also seek to improve its business through partnerships with local and foreign industry leaders, including some Chinese conglomerates and merchants group and South Korea’s largest telecommunications company, SK Telecom.
Following the placement, Masato Mohri and Johji Sato will join OUELH's board of directors.
Mohri is the executive vice President and chief strategy officer of Itochu Singapore as well as the chief strategy officer for Asia and Oceania. He will sit as a non-independent and non-executive director of OUELH and his appointment will take effect upon approval from the local authorities.
Meanwhile, Sato is currently a director at Sumida Corporation and the former executive senior director (Global Japanese Business) at PricewaterhouseCoopers. He joined the board as an independent director on Feb. 15, 2018.