Eldercare provider ECON Healthcare acquires shares in interior design player Crosstec

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Private nursing home operator ECON Healthcare (Asia) has acquired shares of Hong Kong-listed Crosstech Group Holdings, which provides interior design services, mainly to luxury goods and high-end fashion brand clients, the Singapore-listed company said in a filing to SGX Sunday.

“The company is of the view that the potential gain on investment on quoted security will improve the yield of idle cash and therefore the return of the company’s shareholders,” ECON Healthcare said.

On 30 December, the company acquired 6.8 million Crosstec shares for around S$1.99 million, and on 6 January, the company acquired another 5 million shares for around S$2.0 million, for a total investment of around S$3.99 million, the filing said.

“Prior to the first acquisition on 30 December 2021, the company had observed that the share price was on a rising trend for Crosstec,” ECON Healthcare said. It added that based on the volume weighted average price (VWAP) on 6 January, Crosstec’s share price has risen around 33.7 percent.

According to the filing, Crosstec reported a loss for the fiscal year ended 30 June.

ECON Healthcare operates 11 medicare centers and nursing homes in Singapore, Malaysia and China.

In January 2020, the company was appointed an operator for two new nursing homes, the ECON Medicare Centre and Nursing Home – Henderson, expected to be operational in the second half of this year, and the ECON Medicare Centre and Nursing Home – Jurong East, which is expected to be operational in 2025, according to the company’s website.