Lippo Group Expands Health Care Business in Singapore

The logo of the Singapore Stock Exchange (SGX) pictured outside its premises in the financial district of Singapore in this April 2014 file photo. (Reuters Photo/Edgar Su)

By : Tabita Diela | on 11:22 PM February 16, 2017
Category : Business, Corporate News, Featured

Jakarta. The Lippo Group, and Indonesian diversified conglomerate, seeks to expand its presence in Singapore's health care sector with the acquisition of a stake in the city-state's largest clinic chain.

Lippo Group-linked company Gentle Care said in a filing to the Singapore Exchange on Feb. 7 that it has made a takeover offer, which values Singapore-based health care chain Healthway Medical Corporation (HMC) at S$103 million ($73 million), or 42 cents per share.

Gentle Care is a wholly-owned subsidiary of Valiant Leader, a British Virgin Island-based investment holding special-purpose vehicle, which is an indirect subsidiary of several companies, including Lippo China Resources (LCR) and Lippo Capital.

Gentle Care currently has a 17.48 percent stake in HMC.

"Lippo and LCR see the business potential in the health care industry in Singapore, and would therefore like to establish their presence in this field," the filing document said.

It said HMC is a "well-established private health care provider" that not only matches both Lippo and LCR's strategy to strengthen their presence in Singapore, but also offers quality health care management capabilities.

Business expansion in Singapore by the Riady family, which controls the Lippo Group, does not end with HMC.

OUE, a diversified real estate developer and operator controlled by the family, has increased its stake in the International Healthway Corporation, a health care service and facilities provider.

IHC was once a subsidiary of HMC.

OUE, through its subsidiaries, will boost its holdings in IHC to 57.6 percent from 21.8 percent.

Prior to the move in Singapore, Lippo Group has been expanding its health care arm through its Jakarta-listed hospital chain Siloam International Hospitals over the past several years.

Siloam operates 23 hospitals with a total combined capacity of 4,800 beds, 2,100 doctors and more than 8,200 nurses. According to a statement on its website, Siloam will boost its revenue by opening new hospitals and ramping up operations.

There are currently two Siloam hospitals in Myanmar and the company, which is a subsidiary of Jakarta-listed property developer Lippo Karawaci, also has plans to open hospitals in Cambodia, Vietnam and Laos as part of its region-wide expansion.

The Jakarta Globe is affiliated to the Lippo Group.

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