【For Immediate Release】
Union Medical Healthcare to introduce Champion REIT as a strategic partner through allotment of new shares
(29 April 2020, Hong Kong) - Union Medical Healthcare Limited ("Union Medical Healthcare" or the "Company", which together with its subsidiaries, is referred to as the "Group"; SEHK stock code: 2138), a leading integrated medical group in Hong Kong, is pleased to announce that the Group will allot 8,078,927 shares to Champion REIT (2778) based on the subscription price of HK$4.2 per share, representing approximately 0.812% of the enlarged issued share capital. Champion REIT will thereby become the Group's strategic partner.
According to the agreement, the subscription price represents a discount of approximately 1.18% to the closing price as at the settlement date of the subscription agreement. Upon mutual agreement of Union Medical Healthcare and Champion REIT, the proceeds from the subscription amounting will set off against the rental expense of Union Medical Healthcare for the five months ended 31 July 2020 in the amount of HK$33.9 million. There has been no material adverse change in the Group's cash position since 30 September 2019. To strengthen the collaborative relationship with Champion REIT, the Group will become the leading medical and healthcare service provider to Champion REIT in Mong Kok, with a view to establishing a medical tourism destination that offers one-stop medical, healthcare and beauty services.
Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of Union Medical Healthcare, said, "The Group is the largest tenant of Langham Place office tower, renting a total of 8 floors with a site area of approximately 140,000 square feet. The Group has been maintaining good collaboration with the landlord Champion REIT. Through this share allotment, the Group will introduce Champion REIT as a strong investor and strategic partner as well as providing Champion REIT with medical and healthcare services. Together with Champion REIT, it will fortify the leading market position of Langham Place Office Tower as a prominent one-stop healthcare, beauty and lifestyle landmark, while at the same time facilitating the future business development of the Group."
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About Union Medical Healthcare Limited
Leveraging its core businesses of preventive and precision medicine, Union Medical Healthcare is committed to developing medical artificial intelligence by integrating its multi-discipline medical services. The move, which is supported by the Group's high-end branding and quality customer services, is aimed at offering customers safe and effective medical services with professionalism.
The Group principally engages in the provision of one-stop medical and health care services in Greater China at its 56 clinics and service centres with an aggregate service floor area of more than 289,000 square feet. The Group provides a full range of services and products under its well-known brands, including those of its one-stop aesthetic medical solutions provider DR REBORN which has ranked first in Hong Kong by sales for years, primary care clinics jointly established with Tencent Doctorwork, chiropractic services centre SPINE Central, health management centre re:HEALTH and comprehensive dental centre UMH DENTAL CARE. In addition, the Group has put into operation such businesses as the diagnostic and imaging centres HKAI at Langham Place, Mong Kok and 9 Queens Road Central, an oncology treatment centre reVIVE, a day procedure centre HKMED and a specialty clinic SPECIALISTS CENTRAL.
For further information, please contact:
iPR Ogilvy
Callis Lau / Molisa Lau / Vivian Ng
Tel.: (852) 2136 6952 / 2136 6953 / 3920 7651
Fax: (852) 3170 6606
Email: umh@iprogilvy.com
