OUE to acquire OUELH stake from ITOCHU

OUE will support the long-term prospects of OUELH.

OUE has signed an agreement with Tokyo-based ITOCHU Corporation to purchase its shares of OUE Lippo Healthcare (OUELH).

In an announcement in the Singapore Exchange, the real estate giant said it has signed a purchase agreement and a memorandum of understanding with ITOCHU to purchase its 6% stake in Singapore-based OUELH.

On 31 March, OUE will purchase the shares of OUELH for approximately $27.6m, or at $0.10 per unit.

"The transaction extends the strategic partnership with ITOCHU Corporation and is inline with the group’s commitment to the longer-term prospects of OUELH’s healthcare business. The transaction will also allow OUELH to focus on executing its longer term business plan with the firm support of its key stakeholders," OUE said in the bourse announcement.

OUELH currently operates one hospital in China and owns 12 nursing homes in Japan.