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EQS-News / 16/12/2016 / 09:53 UTC+8
_(15 December 2016, Hong Kong) _UMP Healthcare Holdings Limited ("UMP" or
the "Group"; Hong Kong stock code: 722) today announced that it has entered
into a series of agreements with NWS Holdings Limited ("NWS Holdings"; Hong
Kong stock code: 659) and Chow Tai Fook Enterprises Limited ("CTFE") to
speed up UMP's corporate healthcare solutions and clinic network development
in the PRC.
_Formation of clinics investment platform by NWS Holdings and CTFE _
Under the agreements, NWS Holdings and CTFE will form a 50/50 joint venture,
Healthcare Assets Management Limited - ?????????? ("HAML"), whose business
scope will be investment in primary healthcare facilities that are
predominantly clinics and medical centres in Asia, with a key focus in PRC
and Hong Kong.
HAML will enter into a master operation service agreement with UMP and will
_exclusively _appoint UMP as the manager of all of HAML's clinics in the
PRC. UMP shall be entitled to receive management fee from HAML for managing
these clinics based on certain criteria. HAML's clinics will also serve as
service points for all of UMP's corporate customers.
HAML has an initial capital commitment of HK$70 million from each of NWS
Holdings and CTFE to invest in and to acquire clinics in the PRC (i.e. HK$
140million in aggregate). HAML's first investment will be to acquire the
four clinics that were established by UMP in Beijing and Shanghai for a
total cash consideration of approximately HK$121 million.
Leveraging on the strength of the HAML platform, UMP will be migrating to an
asset light manager model, whereby instead of having UMP making significant
capital investments in the setting up, operation and acquisition of clinics,
UMP can focus its financial and human resources on the development of the
corporate healthcare solutions business model and on the management of
clinics owned by other third parties.
_Subscription of 20% of UMP Healthcare China by NWS Holdings _
As originally announced by UMP on 27th September 2016, UMP would introduce
NWS Holdings as a strategic shareholder with 20% shareholding in UMP's
Beijing operations. After extensive discussions with NWS Holdings, UMP has
decided to introduce NWS Holdings as a strategic shareholder at the UMP
Healthcare China level, meaning that NWS Holdings will become a partner with
UMP for the whole of UMP's China operations.
NWS Holdings will be subscribing for 20% of the enlarged share capital of
UMP Healthcare China at a consideration of approximately HK$123 million. The
cash proceeds raised shall be used for the development of UMP Healthcare
China's operations, with a primary focus on the development of the corporate
healthcare solutions business model. After such subscription, UMP and NWS
Holdings shall own 80% and 20% of UMP Healthcare China, respectively. At the
same time, UMP Healthcare China will also increase its shareholding in UMP
Beijing operations from 50% to 70%.
_Dr. Sun Yiu Kwong, Chairman and Chief Executive Office of UMP Healthcare
Holdings Limited, said_,
"This new partnership marks another key milestone in UMP's development of
healthcare services in China, which we believe is in the best interest of
our shareholders.
Leveraging on the extensive experience of both NWS Holdings and CTFE in
operating businesses in China, their vast networks, and substantial
financial resources, UMP will be able to fast-track the building of a
strategic clinic and provider network that is crucial to developing
corporate healthcare solutions services.
This partnership will also enable UMP to concentrate its resources on
building a strong corporate healthcare solutions development team, as well
as a strong primary healthcare workforce through structured training and
accreditation programs. We are confident that such partnership will deliver
great synergies to all of our stakeholders."
_Tsang Yam Pui, Chief Executive Officer of NWS Holdings, said_,
"The HAML platform represents another move by NWS Holdings to expand
healthcare services following our investment in the Gleneagles Hong Kong
Hospital in our home base. The healthcare sector in Mainland China has
tremendous growth potential in view of the healthcare system reform and
rising demand for quality services resulting from aging population and
increase in personal income. Building on our respective market network and
financial strength, the partnership will enable NWS Holdings to benefit from
this fast growing sector in the long run."
-END-
*UMP Healthcare Holdings Limited *
Based in Hong Kong, UMP Healthcare Holdings Limited (Hong Kong stock code:
722) is one of the leading corporate healthcare solutions providers in Hong
Kong, serving more than 1 million members and administering approximately
10,000 health plans. UMP handles more than 1.4 million medical and dental
patient visits in financial year 2015/16 ("FY2015/16"). UMP has a proven
organic growth track record of over 20 years in Hong Kong and offers a
comprehensive range of healthcare services through one of the largest
service networks in Hong Kong, with more than 600 points of service across
Hong Kong, Macau, Beijing and Shanghai. Leveraging its proprietary know-how
and clinical management system, UMP is capable of designing differentiated,
tailor-made healthcare solutions that address each contract customer's
needs. UMP was listed on the main board of the Hong Kong Stock Exchange on
27 November 2015.
*NWS Holdings Limited *
NWS Holdings Limited ("NWS Holdings", Hong Kong stock code: 659), the
infrastructure and service flagship of New World Development Company Limited
(Hong Kong stock code: 17), operates businesses in Hong Kong, Mainland China
and Macau. Its Infrastructure portfolio includes Roads, Environment,
Logistics and Aviation projects. Its Services portfolio comprises Facilities
Management (the management of Hong Kong Convention and Exhibition Centre and
Free Duty), Construction & Transport (construction, bus and ferry services)
and Strategic Investments.
*Chow Tai Fook Enterprises Limited *
Chow Tai Fook Enterprises Limited ("CTFE") is a private Hong Kong-based
holding company owned and controlled by Dato' Dr. Cheng Yu Tung's family.
CTFE is the controlling shareholder of New World Development Company Limited
(Hong Kong stock code: 17), a listed blue chip conglomerate in Hong Kong.
The principal activities of the CTFE group of companies include investment
holdings, property development and investment, hospitality services,
infrastructure, department stores and other consumer and retail businesses.
*Investors and Media enquiries: *
Samuel Louie 852-2507 6993 samuel.louie@ump.com.hk
Document: http://n.eqs.com/c/fncls.ssp?u=WJNJBTAFJY [1]
Document title: UMP Press Release EN 20161215
Key word(s): Alliance
16/12/2016 Dissemination of a Press Release, transmitted by EQS Group.
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December 15, 2016 20:55 ET (01:55 GMT)
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