Fullerton Health reaches settlement with directors

The settlement will allow Fullerton to complete a proposed merger.

Singapore-based healthcare provider Fullerton Health has reached a definitive settlement agreement with two of its shareholders and directors, resolving a dispute in its leadership over a potential equity sale, the company said in a press release.

After a settlement agreement with Dr. Michael Tan and Dr. Daniel Chan, the two shareholders and directors have withdrawn a petition filed last January with the Grand Courts of Cayman Islands to wind up the company, Fullerton said.

The settlement, described by the company as amicable, is expected to pave the way for Fullerton Health to complete a merger proposed by private equity fund RRJ Capital.

READ MORE: Singapore has a ratio of 1 hospital for more than 220,000 Singaporeans

The merger, approved by 85.8% of shareholders on 5 May, involves a cash injection of $251.59m (S$350m) by RRJ Capital and a loan arrangement, as well as a new corporate structure. The company said the merger is expected to be completed in the coming weeks.

Upon completion of the merger, Tan and Chan will also step down from Fullerton Health’s board of directors, and all executive and non-executive positions in Fullerton Health and its related companies across all countries, Fullerton said.