Econ Healthcare inks shareholder agreement for second China nursing home

ECON Healthcare (Asia) has entered into a shareholders' agreement with its joint venture (JV) partners to operate its second nursing home in China.

The private nursing home operator holds a 70 per cent majority stake in the joint venture company which will operate Econ Medicare Centre and Nursing Home - Changshou.

Econ Healthcare expects the 280-bed nursing home to commence operations in 2022. Located in Chongqing at Yucai Road in the Changshou district, the nursing home has a built-up area of about 7,200 square metres.

It will serve the middle to affluent elder market, Econ Healthcare said in a bourse filing.

JV partners Chongqing Guangda Bailingbang Eldercare Industry Group Co and Chongqing Mengxiangjia Technology Co respectively have a 20 per cent and a 10 per cent stake in the JV company.

The holding company of JV partner Chongqing Guangda Bailingbang Eldercare Industry Group Co is wholly-owned by Hong Kong-listed China Everbright.

Econ Healthcare does not expect the signing of the shareholders' agreement to have any material impact on the earnings per share or net tangible assets per share of the group for the financial year ending March 31, 2022

The group's first nursing home in China - Econ Medicare Centre and Nursing Home - Chongqing - began operations in May this year. Econ Chongqing is located in the Jiefangbei area, the central business district of Yuzhong District in Chongqing.

Shares of Econ Healthcare closed at 35.5 Singapore cents on Monday, up two cents or 6 per cent.

READ MORE: Econ Healthcare posts 41.2% rise in full-year net profit to S$5.7m