Perennial to acquire 20% of China's Aidigong

Aidigong runs two maternal and newborn health centres in Shenzhen (top), among others. Perennial CEO Pua Seck Guan (above) says the firm aims to capture growth opportunities arising from China's two-child policy and the "projected growth in annual bi
Aidigong runs two maternal and newborn health centres in Shenzhen (above), among others. Perennial CEO Pua Seck Guan says the firm aims to capture growth opportunities arising from China's two-child policy and the "projected growth in annual births".PHOTO: PERENNIAL REAL ESTATE HOLDINGS
Aidigong runs two maternal and newborn health centres in Shenzhen (top), among others. Perennial CEO Pua Seck Guan (above) says the firm aims to capture growth opportunities arising from China's two-child policy and the "projected growth in annual bi
Aidigong runs two maternal and newborn health centres in Shenzhen, among others. Perennial CEO Pua Seck Guan (above) says the firm aims to capture growth opportunities arising from China's two-child policy and the "projected growth in annual births".PHOTO: PERENNIAL REAL ESTATE HOLDINGS

It will pay $29m for stake in firm running maternal health centres as it eyes growth

Perennial Real Estate Holdings is acquiring a 20 per cent stake in Aidigong, a Chinese maternal and child health management company.

Perennial will pay 135.4 million yuan (S$28.5 million) for the stake, which includes buying stock from Aidigong founder and chairman Zhu Yufei.

The real estate and healthcare firm said yesterday it is aiming to expand its healthcare service business in China to ride on growth opportunities from the new two-child policy, and introduce healthcare real estate in its integrated developments.

Following the acquisition, Aidigong will operate one of the largest post-natal confinement centres in Chengdu at the Perennial International Health and Medical Hub.

The acquisition will make Perennial the second-largest shareholder of Aidigong after Ms Zhu, who will still hold a 44.3 per cent stake.

Aidigong will become an associated company of Perennial.

Established in 2007, Aidigong operates two maternal and newborn health centres in Shenzhen and two post-natal treatment centres in Beijing and Shenzhen.

Perennial chief executive officer Pua Seck Guan said the company hopes to capture growth opportunities arising from China's two-child policy and the "projected growth in annual births, and the demand for quality post-natal care for mothers and newborns by affluent Chinese consumers".

China's two-child policy took effect on Jan 1 this year. Under the new policy, about 90 million Chinese women are allowed to have a second child. About 50 per cent of them are aged 40 and older. The Chinese government is ramping up maternal and child healthcare resources and services in response to an expected increase in later-age pregnancies and complications.

Perennial has three joint ventures in China, including the one with Aidigong.

It co-owns and co-manages eight medical and healthcare facilities in Guangzhou, Chengdu, Beijing and Shenzhen, of which five are operational and three are scheduled to open within the next two years.

A version of this article appeared in the print edition of The Straits Times on March 25, 2016, with the headline 'Perennial to acquire 20% of China's Aidigong'. Print Edition | Subscribe