OUE Lippo Healthcare said on Thursday that it acquired stakes in two joint ventures in Myanmar with three hospitals, one medical center and two clinics for US$19.5 million, or around S$26.5 million.
The company said its indirect wholly owned subsidiary OUELH Healthcare Services (MM), or OHS, entered a deal to acquire a 40 percent stake in Yoma Siloam Hospital Pun Hlaing (YSHPH) from PT Waluya Graha Loka. It added that another indirect wholly owned subsidiary, OUELH Healthcare Assets (MM), or OHA, acquired a 35 percent stake in Pun Hlaing International Hospital, or PHIH, from the same company.
Both YSHPH and PHIH are joint ventures with First Myanmar Investment, or FMI, and upon the completion of the deal, OUELH will be FMI’s joint venture partner in managing and operation the YSHPH’s portfolio of medical facilities, it said in a filing to SGX after the market close on Thursday.
The three hospitals have around 370 beds and are located in Yangon, Mandalay and Taunggyi, it said.
PHIH owns and holds the leases on the lands and properties where the YSHPH’s medical facilities are located, it said.
The purchase price is expected to be fully funded by the net proceeds from the placement of shares to Browny Healthcare a year earlier, with the un-utilized remaining proceeds amounting to S$41.53 million, OUELH said.
Lee Yi Shyuan, chairman of OUELH, said that entering Myanmar was important to the company’s plan to become a pan-Asian healthcare network.
“With the acquisition, we are well-positioned to provide affordable quality healthcare to meet the rising demand in one of the fastest growing emerging economies,” he said in the statement.
Both OHS and OHA are wholly owned subsidiaries of Singapore-based OUELH Investments (MM), which is wholly owned by OUELH, it said.
OUELH said it would seek shareholders’ approval for the transaction at an extraordinary general meeting.
PT Waluya Graha Loka is based in Indonesia and is an indirect, wholly owned subsidiary of PT Lippo Karawaci, which is listed on the Indonesia Stock Exchange, it said. PT Waluya Graha Loka is considered an associate of Stephen Riady, who is the non-independent, non-executive director of OUELH, it said, noting this made the proposed transaction an interested person transaction, requiring shareholder approval.
FMI is listed on the Yangon Stock Exchange and is part of the enlarged Yoma Group, which includes Singapore-listed Yoma Strategic Holdings, the filing said.