OUE Lippo Healthcare Limited divests 100% interests in Japan nursing homes for $163.5m

Perpetual (Asia) Limited is on the other end of the agreement, as the purchaser.

OUE Lippo Healthcare (OUELH) entered into a sale and purchase agreement with Perpetual Asia Limited for the divestment of 100% of the issued and paid-up share capital of OUELH Japan Medical Facilities Pte. Ltd., which owns a 100% interest in 12 japan nursing homes.

A purchase consideration of $163.5m was reached, with Perpetual Asia Limited acting in its capacity as trustee of First Real Estate Investment Trust. 

In the report’s included breakdown of the consideration cost, $131.5m will be in the form of 431,147,541 new REIT units at an issue price of $0.305 per unit, $15,8 million will be in cash, and $16.2m will be in intercompany balances assumed by REIT.

“With the completion of the Proposed Transaction, the group can redeploy its financial resources to create new capacities for growth. OUELH remains focused to become one of the leading healthcare service providers across Pan-Asia,” said Lee Yi Shyan, Chairman, OUELH.

Upon completion of the proposed transaction, the group’s holdings in First REIT are expected to hit 33.2%, more than double the previous value at 15.3%. The transaction would also result in an improvement to the Group’s gearing position to 0.1, from 0.5. 

“The Proposed Transaction is a win-win for both OUELH and First REIT. It is a strong testament of the commitment of both entities in the execution of their long-term strategies to create value for shareholders and unitholders respectively.,” said Yet Kum Meng, CEO, OUELH.