OUE Ltd. and its healthcare subsidiary OUE Lippo HealthCare‘s joint venture company Echo Healthcare Management have tied up with three medical specialist groups in Singapore, the companies said in a filing to SGX Monday.
OUELH holds 60 percent of Echo Healthcare Management, while OUE holds the remainder, the filing said.
Under the tie-up, Echo Healthcare Management and the founders of the medical specialist groups will hold 60 percent and 40 percent, respectively, of Echo Healthcare Services, which will in turn hold 60 percent of each of the medical specialist groups, the filing said.
Echo Healthcare Services will acquire the 60 percent stakes for a total of S$31.06 million, which will be paid via the issuance of shares in Echo Healthcare Services and by S$18.64 million in cash, the filing said. The deal also includes an “earn-out” of up to S$9.32 million to be paid to the specialist groups’ founders if Echo Healthcare Services reaches its growth target, the filing said.
The medical specialist groups include two respiratory specialist practices — Respiratory Medical Associates and The Respiratory Practice — and a cardiothoracic surgery practice operating as Thoracic & Cardiovascular Surgery Specialist, the filing said. The groups have 11 specialist doctors across 10 clinics, the filing said.
Dr. Stephen Riady, executive chairman and CEO of OUE, said: “The partnership is an important milestone in our journey to build a regional healthcare ecosystem, comprising the full spectrum of tiered healthcare services anchored on Singapore’s medical best practices.”
The specialist groups’ financial results for the past three financial years show they are earnings accretive, with stable, recurring income, the filing said.