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OEL completes 51% acquisition of Chinese healthcare company
CATALIST-LISTED OEL (Holdings) said on Sunday that it has completed the acquisition of a 51 per cent stake in Shanghai Longjian Hospital Management through the company's wholly-owned subsidiary AJJ Health Care Management on June 11.
Shanghai Longjian will therefore become an indirect subsidiary of OEL. Shanghai Longjian, founded in the Chinese city of Shanghai last year, is in the business of hospital management, medical technology, biotechnology technology development and health-management consulting.
With the completion of the acquisition, chairman and executive director of OEL Zhang Jian will be leading Shanghai Longjian together with the personnel hired by AJJ to supervise the commercial activities of Shanghai Longjian, said OEL in its regulatory filing.
Meanwhile, Shanghai Longjian founder and legal representative Ye Wenzheng will no longer be considered a key management personnel but will continue to lead the medical team.
OEL also announced in June that it has entered into a joint venture (JV) agreement with Shanghai Suntec Co. According to the agreement, AJJ and Shanghai Suntec will incorporate a JV company in Singapore.
The JV company will be responsible for the manufacturing and distribution of the HIFU-2001 machine that is used for tumour ablation, and Shanghai Longjian will be providing medical treatment guidance and services for the operation of the HIFU-2001 machine.
"The group is expecting to launch and market these medical products and services in July, and eventually offer these services to South-east Asia, the United States and other countries," said OEL.
"The medical team of Shanghai Longjian are also working together with the Chinese government to develop the Covid-19 Rehabilitation Program, which actively promotes treatment and prevention of Covid-19 in the community," OEL added.
OEL shares last traded at 2.3 Singapore cents before it called for a trading halt last Friday.