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OUE Lippo Healthcare subsidiary faces suit by individual claiming majority stake
CERTAIN downstream subsidiaries of OUE Lippo Healthcare are facing a lawsuit by an individual claiming a majority share in one of those units.
OUE Lippo, the hospital and nursing facilities operator formerly known as International Healthway Corp, said that one David Lin Kao Kun has started legal action in the Shanghai Pudong New District Courts against its subsidiaries Shanghai Yilin Medical Management Consulting Co and Wuxi Yilin Health Management Co.
Mr Lin alleges that he had entered into an agreement with Wuxi Yilin Health around June 5, 2014 to hold about a 71 per cent stake in shares in Shanghai Yilin on trust for Mr Lin, in consideration of him performing a capital injection into Shanghai Yilin.
Mr Lin is seeking a court order determining that he is the owner of the 71 per cent stake in Shanghai Yilin.
OUE Lippo Healthcare said that it has received legal advice and is taking the preliminary view that its subsidiaries have a reasonably strong defence against the claim. The subsidiaries will "vigorously defend" the claim, OUE Lippo said.