Hot stock: OUE Lippo Healthcare up 5.3% on new healthcare partnership
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Tan Nai Lun
SHARES of OUE Lippo Healthcare closed higher on Tuesday (May 24), after the healthcare group said it will form new partnerships to add to its healthcare network.
The counter gained as much as 18.4 per cent or S$0.007 to trade at S$0.045 as at 9.04 am, before closing 5.3 per cent or S$0.002 higher at S$0.04 on Tuesday.
No married deals were recorded, according to ShareInvestor data.
As at 9.43 am, its shares have eased slightly to trade at S$0.041, up 7.9 per cent or S$0.003. Some 12.3 million shares worth S$540,000 changed hands.
On Monday, OUE Lippo Healthcare said Echo Healthcare Management, its joint venture with OUE, has formed a partnership called Echo Healthcare Services with 3 medical specialist groups.
The 3 partners include Respiratory Medical Associates (RMA) and The Respiratory Practice (TRP), which provide treatment for lung, sleep and allergy disorders, and Thoracic & Cardiovascular Surgery Specialists (TCSS), which provides cardiac and thoracic surgery.
Echo Healthcare Management will hold a 60 per cent stake in the new joint venture, while the founders of the medical specialists groups will hold the remaining 40 per cent stake collectively.
Echo Healthcare Services will also hold a 60 per cent stake in each of the medical specialists groups.
The total aggregate purchase price for all 3 specialist medical groups is S$31 million, comprising S$6.5 million for RMA’s shares, S$8.3 million for TRP’s shares and S$16.2 million for TCSS’ shares, and payable with a mix of shares and cash.
The board of directors expects the company to tap on the medical specialists to elevate the overall healthcare standards and quality of OUE’s regional healthcare network. The medical partners will also be integrated into the healthcare network while retaining their clinical independence in their own practices.
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