OUE Lippo Healthcare, CMSK to co-develop Prince Bay hospital in China

It entered a share subscription agreement for $17.9m.

OUE Lippo Healthcare (OUELH) has partnered with China Merchants Shekou Industrial Zone Holdings (CMSK) to develop, operate and manage a high-end international hospital located in Prince Bay at the Shenzhen province of China, the company announced.

LCM (Prince Bay Development), a subsidiary of OUELH, has entered into a share subscription agreement (SSA) with three companies for the development of the project: CMSK subsidiary Golden Pinnacle Enterprises (Golden Pinnacle), its subsidiary Riviera Quad International Limited (Offshore JV Co) and Lekang Assets Co. (Lekang), a company under Offshore JV Co.

Offshore JV Co currently has an approximate $1277 of outstanding issued shares, all of which are held by Golden Pinnacle. Upon the SSA, each of the company, and Golden Pinnacle will hold 50% of the total issued shares of Offshore JV Co., whilst Golden Pinnacle and Offshore JV Co shall enter into a shareholders’ agreement to set out the management and control of Offshore JV Co.

The aggregate consideration for the subscription to be paid by OUELH is $17.9m.

Lekang will own the use rights of the land parcel intended to be used for the development of the proposed hospital project. The land comprises a site area of approximately 6246.75sqm with a plot ratio of 4.8.