EQS-News / 20/07/2020 / 09:16 UTC+8
[FOR IMMEDIATE RELEASE]
Union Medical Healthcare increases stake in Hong Kong Pain and Wellness
Solution Limited to 75%
Opportune mergers and acquisitions of medical brands to increase recurring
income
(20 July 2020, Hong Kong) Union Medical Healthcare Limited ("Union Medical
Healthcare" or the "Company", which together with its subsidiaries is
referred to as the "Group", SEHK stock code: 2138), a leading integrated
medical group in Hong Kong1, is pleased to announce that the Group has
increased its holding in Hong Kong Pain and Wellness Solution Limited (the
"target company", which together with its subsidiaries, is collectively
referred to as the "target group") by a 24% equity at a total consideration
of HK$94.6 million. The total consideration will be settled by the allotment
and issuance of consideration shares of Union Medical Healthcare.
Pursuant to the sale and purchase agreement, Eric Chu and Andy Lin, who are
both chiropractic doctors, will sell all their equity interests in Hong Kong
Pain and Wellness Solution Limited. Union Medical Healthcare will pay for
the acquisition of the stakes by allotting and issuing 22,524,000
consideration shares and issuing 10,000,000 warrants to the two chiropractic
doctors. After the issuance and allotment of the consideration shares, Dr.
Chu and Dr. Lin will hold 2.25% and 0.11% respectively in Union Medical
Healthcare. The consideration shares will be issued at HK$4.2 each, which
represents a premium of 4.2% over Union Medical Healthcare's closing price
of HK$4.03 per share on July 17.
Upon completion of the transactions, Union Medical Healthcare will hold a
75% equity interest in Hong Kong Pain and Wellness Solution Limited whose
financial information will continue to be included in the Group's
consolidated financial statement. As the sellers of the equity stakes, Eric
Chu and Andy Lin severally provide a profit guarantee that the aggregate net
profit of the target company's subsidiaries shall be no less than HK$188
million in the next five years as of March 31, 2025. They will continue to
manage, consolidate and expand the business of pain and wellness solution in
Asia-Pacific. Moreover, they will also be involved in the integration of the
Group's medical services.
Dr. Chu and the Group share common values. Since the Group acquired New York
Medical Group, a subsidiary of Hong Kong Pain and Wellness Solution Limited
in 2016, Dr. Chu has actively participated in the integration of the Group's
businesses. This has resulted in the continued development of the Group,
whose number of clinics has increased from 7 in 2016 to 18 now (including
its flagship center in Kowloon East which is scheduled to open before the
end of 2020). Moreover, the number of chiropractors and orthopedists doubled
from 13 in 2016 to 27 now. Hong Kong Pain and Wellness Solution Limited's
profit has increased sixfold since 2016.
Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of
Union Medical Healthcare said, "The demand for spine health management and
pain therapies continues to increase. Hong Kong Pain and Wellness Solution
Limited has outstanding performance in chiropractic, orthopedics, pain
therapy and health management services. All these services generate
recurrent income for the Group. Through this acquisition, Union Medical
Healthcare will be able to increase and concentrate its shareholding in the
company. Dr. Chu is the chairman of The Chiropractic Doctors' Association of
Hong Kong, and Dr. Lin is a prestigious practitioner of chiropractic. Their
expertise and management skillset will strengthen the capability for the
development of the Group's medical specialty of pain therapy in Asia-Pacific
as well as the optimization of the management and integration of the Group's
medical services. The Group will replicate this model to further
consolidates the medical industry."
- End -
About Union Medical Healthcare Limited
Union Medical Healthcare is Hong Kong's largest non-hospital medical service
provider* , leveraging its core businesses of preventive and precision
medicine, and committed to developing medical artificial intelligence by
integrating its multi-disciplinary medical services. The move, which is
supported by the Group's high-end branding and quality customer services, is
aimed at offering customers safe and effective medical services with
professionalism.
The Group principally engages in the provision of one-stop medical and
health care services in Greater China. The Group provides a full range of
services and products under its well-known brands, including those of its
one-stop aesthetic medical solutions provider DR REBORN which has ranked
first in Hong Kong by sales for years, primary care clinics jointly
established with Tencent Doctorwork, chiropractic services centre SPINE
Central, health management centre re:HEALTH, a vaccine centre Hong Kong
Professional Vaccine HKPV, a comprehensive dental centre UMH DENTAL CARE, a
diagnostic and imaging centre HKAI, an oncology treatment centre reVIVE, a
day procedure centre HKMED and a specialty clinic SPECIALISTS CENTRAL.
*According to the independent research conducted by Frost and Sullivan in
terms of revenue in 2018 and 2019
For further information, please contact:
iPR Ogilvy Limited
Callis Lau / Molisa Lau / Shana Li / Ada Chew
Tel: (852) 2136 6952 / 2136 6953 / 3920 7649 / 3920 7650
Fax: (852) 3170 6606
Email: umh@iprogilvy.com
File: Union Medical Healthcare increases stake in Hong Kong Pain and
Wellness Solution Limited to 75% [1]
20/07/2020 Dissemination of a Financial Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
July 19, 2020 21:16 ET (01:16 GMT)
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