OUE raises stake in OUE Healthcare to 89.7% with S$20.7 million share purchase
OUE says the transaction is in line with its commitment to the longer-term prospects of OUE Healthcare’s core business
[SINGAPORE] OUE has agreed to acquire a 19.3 per cent stake in Catalist-listed OUE Healthcare , amounting to some 858.4 million shares, for an aggregate consideration of S$20.7 million.
The real estate and healthcare group on Tuesday (Dec 16) said that it has entered a share purchase agreement to acquire all of OUE Healthcare shares held by Browny Healthcare, an indirect wholly owned subsidiary of Itochu – a Japanese trading company listed on the Tokyo Stock Exchange.
The consideration will be fully funded by OUE’s internal resources. Once complete, the transaction will raise OUE’s stake in OUE Healthcare to 89.7 per cent or around 3.98 billion shares, up from its current 70.4 per cent shareholding.
Following the closing of the deal, expected to take place on Dec 24, Browny Healthcare will no longer hold any shares in OUE Healthcare.
OUE said the transaction is in line with its commitment to the longer-term prospects of OUE Healthcare’s core business.
The deal will enable OUE Healthcare to focus on executing its longer-term business plan and allow OUE to increase its shareholding in the Catalist-listed group at a discount to the market price, the company added.
It noted that the consideration was arrived at following arm’s length negotiations, taking into account the fair market value of the sale shares, determined based on their weighted average price.
Assuming the transaction was completed on Dec 31, 2024, it would have had no material impact on OUE’s consolidated net tangible assets per share, which was S$4.16 as at December 2024.
Assuming it was completed on Jan 1, 2024, it would have had no material impact on OUE’s consolidated earnings per share. The company’s unaudited loss per share as at Dec 31, 2024, was S$0.3586.
OUE shares closed Tuesday 0.8 per cent or S$0.01 lower at S$1.17 before the news; OUE Healthcare shares ended the day flat at S$0.026.
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