OUE plans to acquire approximately 19.3% of OUE Healthcare, listed on the Kelly Board, for a total price of 20.71 million yuan.
Driven by the news, OUE Healthcare's stock price surged on Wednesday (December 17) after the market opened, rising 15.4% to 0.03 yuan as of 11:30 AM.
On Tuesday (16th), OUE announced that it had signed a share purchase agreement with Browny Healthcare to acquire all shares of OUE Healthcare held by the latter. Browny Healthcare is a wholly-owned subsidiary of ITOCHU Corporation, a company listed on the Tokyo Stock Exchange in Japan.
The transaction is expected to be completed by December 24. Upon completion, OUE's shareholding in OUE Healthcare will increase from the current 70.4% to 89.7%. The acquisition price will be fully paid using OUE's internal resources.
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OUE stated that the transaction price was determined based on fair negotiations and fully considered the fair market value of the shares being sold, with the fair value calculated based on the weighted average price of the shares.
OUE expressed that this transaction reflects the group's commitment to the long-term development of OUE Healthcare's core business. The transaction will allow OUE Healthcare to focus on advancing its long-term business plans while enabling OUE to increase its shareholding at a price below the market rate.
Based on the fiscal year 2024, assuming the transaction is completed on December 31, 2024, it will not have a significant impact on OUE's consolidated net asset per share. Assuming the transaction is completed on January 1, 2024, it will not have a significant impact on consolidated earnings per share.
As of 11:30 AM, OUE's stock price was 1.17 yuan, unchanged

OUE plans to acquire approximately 19.3% of OUE Healthcare for 20.71 million yuan, a move that has driven OUE Healthcare's stock price up by 15.4%. After the transaction is completed, OUE's shareholding in OUE Healthcare will increase from 70.4% to 89.7%

After being acquired by OUE for 19.3% of its shares, OUE Healthcare's stock price surged by 15% | Lianhe Zaobao