Perennial Real Estate buys 20% stake in China maternal and healthcare firm

PERENNIAL Real Estate Holdings will acquire a 20 per cent interest in an established maternal and child health management company in China for 135.4 million yuan (S$28.7 million).

It will acquire the shares of Shenzhen Aidigong Modern Maternal and Child Health Management Co Ltd (Aidigong) from existing shareholders and via an equity subscription, emerging as the second single largest shareholders, said the firm in an announcement to the Singapore Exchange.

Aidigong's founder and chairman Zhu Yufei and other shareholders will hold the remaining equity interests of 44.3 per cent and 35.7 per cent respectively.

The transaction will be funded via internal funds and external borrowings.

Perennial said the acquisition will strengthen its healthcare strategy to grow the business as an owner and operator with a portfolio of holistic medical and healthcare-related services.