OUE Lippo Healthcare flags interested person transactions
OUE Lippo Healthcare has entered into certain interested person transactions (IPT) during the current financial year with the manager of First Reit and with OUE Treasury, it said in a filing to the Singapore Exchange on Friday night.
First Reit's manager is a joint venture between the company and OUE, while OUE Treasury is a wholly-owned unit of OUE, which in turn is a controlling shareholder of OUE Lippo Healthcare.
In January, First Reit had launched a non-underwritten rights issue to raise gross proceeds of about S$158.2 million while First Reit's manager had subscribed for its pro rata entitlement of the rights issue. On Feb 11, 2021, OUE Lippo Healthcare granted an interest-free loan of about S$5.92 million to First Reit's manager in order for it to subscribe for its total provisional allotment of units under the rights issue.
"The value at risk to the company for the First Reit manager's loan for the financial year ending Dec, 31 2021 is the value of the loan (of around S$5.92 million)," said OUE Lippo Healthcare.
Meanwhile, on Aug 14, 2019, a subsidiary of the company, OUELH Medical Assets (OMA), entered into a loan agreement with OUE Treasury where OUE Treasury advanced S$4.15 million to OMA at an interest rate of 4 per cent per annum.
On Jan 22, 2021 and June 25, 2021, OUE Treasury and OMA entered into extension letters, where the term of the OUE Treasury loan was extended to June 29, 2021 and Dec 29, 2021.
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The value at risk to OMA for the OUE Treasury loan extensions for FY2021 is the interest payable on the loan in FY2021 - or S$165,000, the company said.
The total value of all transactions entered into between the group and the interested group for FY2021 is nearly S$195.7 million, which represents 141.6 per cent of the group's latest audited net tangible assets (NTA) as at Dec, 31 2020.
This includes another transaction on Feb 23, 2021 for the allotment and issuance of convertible perpetual bonds to Treasure International Holdings following the conversation of existing shareholder loans. The value for that transaction was about S$189.6 million.
As it exceeds the relevant threshold of 3 per cent of the group's audited NTA under the Catalist rules, an announcement was required by OUE Lippo Healthcare.
The company's audit and risk committee has reviewed the First Reit manager loan and OUE Treasury loan extensions and is of the view that they are not prejudicial to the interests of the company and its minority shareholders, OUE Lippo Healthcare said.
The counter closed at 3.8 Singapore cents on Friday, down 2.56 per cent or 0.1 cent.
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