ITOCHU Embarks on Strategic Partnership in Healthcare Business in Asia with Lippo Group
January 11, 2018
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has agreed to make a strategic investment in OUE Lippo Healthcare Limited (hereinafter “OUELH”), which is listed on the Catalist Board of the Singapore Stock Exchange.
OUELH is a member company of the Lippo Group (hereinafter, “Lippo”).
Lippo is one of Asia’s largest and most diversified conglomerates with investments in real estate, retail, hospitality and leisure, healthcare, education, media and news.
OUELH will serve as the primary entity for ITOCHU to collaborate with Lippo on investments and management of hospitals and other healthcare-related facilities (hereinafter “Healthcare Business”) in Asia.
The investment is made pursuant to a Memorandum of Understanding (“MOU”) executed on May 3, 2017 between ITOCHU and Lippo.
The MOU envisions the joint development of Healthcare Business in Asia, which has high growth potential.
ITOCHU will acquire new shares in Lippo’s healthcare unit, OUELH, through its newly established Singapore-based subsidiary.
The investment of 78,750,000 Singapore Dollars (approximately 6.6 billion Japanese Yen) is for a 25.3% stake, based on the enlarged shareholding in OUELH.
As the core healthcare company of Lippo in Asia outside of Indonesia, OUELH can leverage on the expertise of Siloam Hospitals operated by Lippo in Indonesia and the successful real estate business models, such as healthcare REITs, to increase asset value, and work with leading local partners to expand its Healthcare Business in Asia, such as China, Myanmar, Vietnam, Thailand and other countries.
ITOCHU will take full advantage of its network in Asian countries to promote strategic alliances with leading local partners and to utilize its experience in the Healthcare Business in Japan to form partnerships between OUELH portfolio hospitals and Japan’s healthcare professionals and to introduce hospital operational and management methods.
In addition, ITOCHU will pursue synergistic opportunities in the Healthcare Business with its strategic partners, CP Group and the CITIC Group, to expand OUELH’s business and value.
Overview of OUELH
|Name||OUE Lippo Healthcare Limited|
|Chairman||Lee Yi Shyan|
|Business activities||Investments and management of hospitals and other healthcare-related facilities|