OUE Lippo Healthcare's joint venture with Chinese state-owned conglomerate China Merchants Group, China Merchants Lippo Hospital Management (CMLHM), has entered into a framework agreement with China Changjiang National Shipping Group Co and Shanghai Changjiang Shipping Co to incorporate a new joint venture company in China to manage the operations of Shanghai Changhang Hospital in Pudong, Shanghai.
CMLHM is an joint venture company between Lippo Healthcare, an indirect wholly-owned subsidiary of OUELH, and China Merchants Landmark (Shenzhen) Co, a member of China Merchants Group.
The agreement envisages that China Changjiang and CMLHM will incorporate a new joint venture company in China to manage the operations of Shanghai Changhang Hospital, now operated by Shanghai Changjiang. CMLHM will hold a 51 per cent stake, with China Changjiang holding the remaining stake.
"The complementary partnership with China Merchants Group brings together our international healthcare expertise and their deep local market knowledge," said Mr Lee Yi Shyan, chairman of OUELH. "Through this joint venture with China Changjiang, we will be able to better serve the China healthcare market."
Catalist-listed AsiaPhos intends to issue a formal notice of arbitration to the Chinese government after unsuccessful attempts to settle ongoing disputes through negotiations with the Sichuan provincial government.
The phosphate mining firm yesterday said it will work with legal counsel if the Sichuan government fails to come up with a satisfactory settlement proposal within 30 days.
"Based on consultations with legal counsel, the company believes that China's actions amount to an unlawful expropriation of AsiaPhos' investments, and breach China's obligations to provide fair and equitable treatment and other protections under the China-Singapore Bilateral Investment Treaties and China-Asean Investment Agreement," AsiaPhos said.
AsiaPhos has been in discussion with the Sichuan government for a settlement in relation to the non-renewal of the mining and exploration rights in the JiuDingshan Nature Reserve.