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Singapore Medical Group places out S$15m of shares to S Korea's CHA Healthcare
SINGAPORE Medical Group (SMG) has, through a S$15 million share placement, ushered the entry of South Korea's CHA Healthcare Co as a major strategic shareholder.
The group will issue 30 million new ordinary shares to CHC at 50 Singapore cents per share via a private placement. This investment will see CHC emerge as the group's fourth largest shareholder with an 8.8 per cent stake of the enlarged shareholding base and its largest strategic equity partner.
SMG announced the signing of a collaborative agreement on Friday. Explaining the collaboration, its CEO Beng Teck Liang noted that there is a sizeable Korean community in the region seeking high-quality healthcare with a strong preference for Korean-affiliated services that the group can tap into.
"In Singapore and Vietnam, two markets which we operate in, there is a large and growing market of Korean expatriates. With a lack of services targeted specifically to the Korean community, we are excited to explore opportunities to meet their healthcare demands and privileged to partner with the internationally renowned CHA," he said.
CHA runs 10 general and specialty hospitals and four medical check-up centres in Korea; two healthcare facilities, including CHA Hollywood Presbyterian Medical Center, in the United States; one therapeutic cell treatment clinic in Tokyo; and 27 research and educational institutions, including CHA University Medical School.