Lippo Group’s OUE Lippo Healthcare, or OUELH, the healthcare subsidiary of Singapore-listed property developer and owner OUE Limited, announced the completion of a private placement of some 565.5 million new ordinary shares to Japanese general trading firm Itochu Corporation.
The private placement, worth S$78.8 million ($60 million), makes Itochu Corporation a strategic investor in OUELH, holding 25.3% of all shares, through its indirect wholly-owned subsidiary of Browny Healthcare.
The Lippo Group, through OUE, continues to be the biggest investor, holding 64.4% of all shares.
OUELH has healthcare portfolios across Singapore, Malaysia, China, Japan and Australia, and the company has been reportedly seeking to expand in China, Japan and Southeast Asia as a whole. Itochu is one of the largest and most diversified trading companies in the world, with a market capitalization of over $30 billion.
OUELH will also seek to improve its business through partnerships with local and foreign industry leaders, including some Chinese conglomerates, merchant groups and South Korea’s largest telecommunications company, SK Telecom. Following the placement, Masato Mohri and Johji Sato will join OUELH’s board of directors.
Mohri is the executive vice president and chief strategy officer of Itochu Singapore as well as the chief strategy officer for Asia and Oceania. He will sit as a non-independent and non-executive director of OUELH, with his appointment taking effect upon approval from local authorities. Sato is currently a director at Sumida Corporation and the former executive senior director (global Japanese business) at PricewaterhouseCoopers. He joined the board as an independent director on February 15, 2018.