GK Goh, four others sued over Australian acquisition

SINGAPORE tycoon Goh Geok Khim's GK Goh Holdings went ahead with an A$161.7 million (S$191.3 million) investment in an Australian residential aged-care services player even as the founding shareholders of private nursing home provider Orange Valley invoked a non-compete clause in legal proceedings against the firm.

One day before GK Goh shareholders were scheduled to vote on the acquisition of Domain Principal Group, which operates 55 nursing homes in Australia, Orange Valley Healthcare founder Tan Soo Sam and Tan Hwee Hoong sued GK Goh, Mr Goh, independent director David Lim, GKG Investment Holdings and the latter's unit Fushia Investments.

At issue is whether the defendants, in shifting into the Australian aged care sector, are in breach of a 2006 shareholders agreement that prohibits them from owning interest in a rival nursing home business.