It bought stakes in two joint venture companies with three hospitals, one medical centre and two clinics.
OUE Lippo Healthcare’s (OUELH) wholly-owned subsidiaries entered into a sale and purchase agreement with Indonesia-based PT Waluya Graha Loka to acquire stakes in two joint venture companies for $19.5m, an announcement revealed.
The firm acquired a 40% stake in Yoma Siloam Hospital Pun Hlaing (YSHPH) and a 35% stake in Pun Hlaing International Hospital (PHIH) which are joint venture companies under First Myanmar Investment Company (FMI). Upon completion, OUELH will be the joint venture partner of FMI in the management and operation of a healthcare portfolio that constitutes of three hospitals, one medical centre and two clinics operated by YSHPH. PHIH owns and holds the leases of the land and properties where the medical facilities are located.
OUELH revealed that the three hospitals which have a total bed capacity of approximately 370 beds are located in the cities of Yangon, Mandalay and Taunggyi. The core services offered by the hospitals include emergency, laboratory, imaging, physiotherapy, overseas clinical services and in and out-patient services across practices such as Cardiology, Obstetrics and Orthopaedics.
“Entry into Myanmar is an integral part of our strategy to grow into a Pan-Asia healthcare network,” OUELH chairman Lee Yi Shyan said in a statement. “With the acquisition, we are positioned to provide affordable quality healthcare to meet the rising demand in one of the fastest growing emerging economies.”
According to the statement, Myanmar’s gross domestic product (GDP) has grown 12 times with a compounded annual growth rate at approximately 18.1%. The country is expected to achieve a real GDP growth of 7.4% per annum from 2018 to 2022 which makes it the fastest growing economy in Southeast Asia based on United Nations’ data.
In line with its growth, Myanmar is expected to experience high population growth and rapid urbanisation that are said to lead to higher budget allocations for infrastructure and services, including in the healthcare sector.
“Healthcare spending has increased from $279m in 2012 to $789m in 2018, and the government plans to implement large scale reforms such as the provision of universal health coverage by 2023,” the firm highlighted.
OUELH will be seeking the approval of its shareholders for the proposed transaction at an extraordinary general meeting (EGM) which will be convened in due course, the statement noted.
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