OUE Lippo Healthcare announces private placement of 562.5 million shares to Itochu Corp

OUE Lippo Healthcare (OUELH) is raising S$78.75 million through a private placement of some 562.5 million new ordinary shares to trading company Itochu Corp.

Itochu, via its indirect wholly owned subsidiary Browny Healthcare, will acquire the shares at an issue price of 14 Singapore cents per share. This will give Itochu a 25.3 per cent stake, on a fully diluted basis, in OUELH.

The placement is contingent on - among other things - the green light from the Singapore Exchange, with the new shares expected to be listed on or before Feb 10 this year.

Stephen Riady, executive chairman of OUE and board director of OUELH, said: "With its extensive network in Asia, Itochu will be a key partner for OUE Lippo Healthcare as it embarks on its growth path to become a leading healthcare company in Asia."

OUELH is a subsidiary company of OUE, which in turn is a member company of conglomerate Lippo Group.

This placement comes as Itochu is seeking to diversify into Asia's expanding healthcare market.

Masahiro Okafuji, president and chief executive of Itochu, added: "We see the tremendous potential of the Asian healthcare market. Taking a stake in OUE Lippo Healthcare allows Itochu to partner with the Lippo Group to gain a strategic foothold in this growing sector."

Trading in shares of OUELH was halted early Wednesday morning, pending the announcement. The counter closed at 12.1 Singapore cents on Tuesday.