South Korea’s CHA Medical Group has sharply bumped up ownership in Singapore Medical Group (SMG) to become the largest stakeholder of the multi-disciplinary specialist clinic group with some 40 clinics across Southeast Asia in a move to accelerate its global push.
CHA Medical Group said on Thursday that the Singaporean operation of CHA Healthcare Systems (CHS), a subsidiary of its listed CHA Biotech, has agreed to acquire additional stakes in Singapore Medical Group (SMG) at 50 million Singapore dollars ($36.9 million) to raise its holding from current 6.86 percent to 24.13 percent.
CHA Medical Group, having secured abount 110 billion won ($98 million) funding from Mirae Asset Group for the deal last year, said it will work out with Mirae Asset to complete investment within the first half of this year.
CHA Medical Group aims to create one of the largest healthcare networks in the Asia-Pacific region by combining its fertility and women’s health expertise with SMG’s regional platform, spanning a world-class oncology program, wellness center, and women’s health center.
CHA has worked on a project to expand its footprint in Singapore and Vietnam since it formed strategic partnership with SMG last February. SMG founded in 2005 operates clinics with expertise in 11 areas including women’s health, cancer care, imaging, pediatrics and dermatology. It made a debut on the Singapore Stock Exchange in 2009 and posted a revenue growth of over 40 percent a year over the past three years. Its market cap reached about 179.6 billion won as of Feb. 19.
“The stake acquisition is a preemptive measure to develop SMG as an outpost to preemptively respond to medical market changes by introducing digital healthcare and leverage biotechnology in Singapore well equipped with a global level of medical infrastructure,” said Yoon Kyung-wook, head of CHA Healthcare.
CHA Medical Group pioneered exports of Korea’s medical technology while setting up an in vitro fertilization center in the U.S. in 1999, acquiring LA HPMC in 2002 and establishing a cell therapy center in Tokyo in 2013.
By Jin Young-tae and Minu Kim
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