Singapore Paincare eyes China entry with investment in community hospital operator
Sharanya Pillai
SINGAPORE Paincare Holdings is eyeing an entry into the China market, with its 51 per cent-owned subsidiary agreeing to invest 40 million yuan (S$7.6 million) in community hospital operator PuXiang Healthcare Holding.
The subsidiary, Singapore Paincare Capital (SGPC), has entered a share subscription agreement for 2.8 million new Series A+ preferred shares in PuXiang.
This translates to a 2.26 per cent stake, Singapore Paincare announced on Wednesday (June 14).
Founded in 2019, PuXiang owns and operates 15 community hospitals in Beijing, Hebei and Tianjin. It provides specialised services such as chronic disease treatment, aesthetics and dentistry.
Singapore Paincare will contribute 20.4 million yuan of the investment sum, while the remainder will come from other entities that own SGPC: Trident Investment, which holds a 44 per cent stake and Glory Partners Capital, which owns 5 per cent.
The deal marks Singapore Paincare’s first overseas foray and gives it “a firm foothold in China’s fast expanding healthcare market”, the company said in its filing.
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In addition, SGPC signed a memorandum of understanding (MOU) with PuXiang to explore the possibility of jointly establishing a medical services company. The specific terms and conditions of this joint venture will be separately negotiated and signed by both parties.
Under the MOU, SGPC and PuXiang will also promote each other’s brands at industry conferences and events.
Singapore Paincare will further discuss the possibility of injecting its pain management expertise into PuXiang’s pain segment, potentially attracting more patients.
“Replicating our pain care ecosystem overseas was one of the reasons for our initial public offering in 2020. Our plans were held back by the Covid-19 pandemic but we are excited to be back on track with China as our potential first market,” said Singapore Paincare chief executive Bernard Lee.
Post-pandemic, Singapore Paincare has also resumed talks with potential partners overseas in other markets its foreign patients hail from, including Indonesia, the Philippines, Malaysia and Vietnam.
Shares of the company ended Wednesday at S$0.195, down 0.5 per cent.
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