Singapore: Japan’s Itochu invests $59m in OUE Lippo Healthcare

Japanese general trading firm Itochu Corporation has become a strategic investor in OUE Lippo Healthcare (OUELH), the healthcare subsidiary of the SGX-listed property developer and owner OUE Limited, through a private placement of S$78.8 million ($59.1 million) worth of shares.

Tokyo-listed Itochu intends to diversify into Asia’s growing healthcare market by taking a strategic stake in OUELH, which operates nursing care facilities.

The deal was conducted through its indirect wholly-owned subsidiary Browny Healthcare, which will acquire 562.5 million new shares at 14 cents, 2 cents higher than OUELH’s closing price on Wednesday. The transaction will be completed before 10 February and will grant Itochu a 25.3 per cent stake in OUELH.

Masahiro Okafuji, President and CEO of Itochu, says, “Taking a stake in OUE Lippo Healthcare allows Itochu to partner with the Lippo Group to gain a strategic foothold in this growing sector.”

Net proceeds from the placement, after expenses of S$1.3 million, should come to S$77.45 million. OUELH, which formerly operated as the International Healthway Corporation, states that between 40 per cent to 50 per cent of these proceeds will go towards general working capital purposes.

The remaining sum will be invested in developing its healthcare business and healthcare-related projects, strengthening its financial position and enabling it to execute its business growth plans.

With Itochu holding a stake, OUELH be able to harness business synergies in Japan and other parts of Asia through leveraging on Itochu’s  brand name, vast business network and strategic partnerships with other Asian conglomerates, as well as its healthcare assets.

Stephen Riady, Executive Chairman of OUE and board director of OUELH, says, “With its extensive network in Asia, ITOCHU will be a key partner for OUE Lippo Healthcare as it embarks on its growth path to become a leading healthcare company in Asia.”

Also Read:

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Billionaire Riady family-backed OUE in race for Singapore United Engineers stake

Japan: MUFG invests in Crowd Realty; Refcome raises funding led by Itochu unit

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.