OEL eyes 51% stake in Chinese healthcare company

Catalist-listed OEL (Holdings) said yesterday that it has entered into a non-binding memorandum of understanding (MOU) for the proposed acquisition of a 51 per cent stake in Shanghai Longjian Hospital Management.

This comes after the property management company on Feb 12 said that it plans to diversify into early-childhood childcare and health education in Singapore, as well as the healthcare industry, through a share placement to investors led by controlling shareholder Zhang Jian.

The MOU is not legally binding, save for the provisions relating to cost, confidentiality, duration and exclusivity, governing law and dispute resolution.

The agreement sets out the key commercial terms between the company and Shanghai Longjian, and the parties shall negotiate with the intention of executing the agreement within six months from March 10, OEL noted.

Shanghai Longjian, founded in the Chinese city of Shanghai last year, is in the business of hospital management, medical technology, biotechnology technology development and health-management consulting.

Shanghai Longjian founder and legal representative Ye Wenzheng will continue to lead the firm's healthcare business in China after the acquisition is completed.

Shares in OEL (Holdings) last traded at 1.6 cents on Monday, down 0.2 cent, or 11.1 per cent.

THE BUSINESS TIMES