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OEL in non-binding pact to buy 51% stake in China healthcare firm
CATALIST-LISTED OEL (Holdings) on Thursday said it has entered into a non-binding memorandum of understanding (MOU) for the proposed acquisition of a 51 per cent stake in Shanghai Longjian Hospital Management Co.
This comes after the property management company on Feb 12 said it plans to diversify into early childhood childcare and health education in Singapore, as well as the healthcare industry, through a share placement to investors led by controlling shareholder Zhang Jian.
Due to commercial sensitivity, the final amount for the acquisition will only be disclosed upon entry of a definitive agreement, the company said.
The MOU is not legally binding, save for the provisions relating to cost, confidentiality, duration and exclusivity, governing law and dispute resolution.
The agreement sets out the key commercial terms as agreed between the company and Shanghai Longjian and the parties shall negotiate with the intention of executing the definitive agreement within six months from March 10, when the MOU was signed, OEL (Holdings) noted.
Founded in Shanghai, China in March 2019, Shanghai Longjian is in the business of hospital management, medical technology, biotechnology technology development and health management consulting.
The founder and legal representative of Shanghai Longjian is Ye Wenzheng, who is one of the top authorities in China's haematology department, according to OEL (Holdings). Following the completion of the proposed acquisition, Mr Ye will continue to lead Shanghai Longjian's healthcare business in China.
Among other projects, the doctors of Shanghai Longjian are using the medical technology of a hydrogen generator to conduct "medical expert guidance, clinical services and technical specification control for Covid-19 affected patients", the company said.
This technology has been recognised by China's authoritative experts and is being applied in Wuhan Central Hospital, Jinyintan Hospital, Zhongnan Hospital, Hanyang Hospital and Puren Hospital.
Shares in OEL (Holdings) last traded at 1.6 Singapore cents on March 9, down 0.2 cent or 11.1 per cent.