Union Medical Healthcare introduces real estate expert its strategic shareholder to facilitate its business development in mainland China

[FOR IMMEDIATE RELEASE]

Union Medical Healthcare introduces real estate expert its strategic shareholder to facilitate its business development in mainland China

(28 September 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), the largest nonhospital medical group in Hong Kong*, is pleased to announce that the Group has conditionally agreed to sell the 10 million existing shares to Renowned Idea Investments Limited, which is wholly-owned by a non-executive director of Agile Group (SEHK stock code: 3383) (the "Purchaser"), through Top-up Placing. Such shares will account for approximately 0.97% of the Company's enlarged issued share capital. The sale price is HK$4.25 per share. The Group expects to receive net proceeds of approximately HK$42.3 million from the transaction and intends to use them for its general corporate purposes. 

The sale price of HK$4.25 per sale share represents a discount of 10.34% to the Company's last closing price of HK$4.74 on the trading day just before the signing of the share subscription agreement. The introduction the Purchaser as a strategic investor will enable Union Medical healthcare to leverage on the Purchaser's resources in real estate to further develop its business in mainland China. It will also optimize the Company's shareholder base.

Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of Union Medical Healthcare said, "The purchaser has extensive experience in the development and management of real estate in mainland China. The Group is honored to make this strategic investor its shareholder. This will strengthen the Group's shareholder base and increase its public float. Union Medical Healthcare has been committed to expanding its business in the Guangdong-Hong Kong-Macao Greater Bay Area since its listing. With its professional medical team and clinic network, as well as its outstanding medical tourism service capabilities, the Group has laid a solid foundation for its development in the Greater Bay Area. The Group expects to establish a long-term business partnership with the purchaser. His board experience and acumen for investment in mainland China's real estate sector, coupled with the Group's excellent medical team and standardized management, will deepen the cross-sector cooperation in medical services and real estate sectors and promote the Group's qualitative medical services to the mainland communities. It will also facilitate the Group's precise layout in mainland market and scale new heights in its business development."

On the other hand, followed by the investment on Union Medical Healthcare by Renaissance City Development Company Limited, a wholly-owned subsidiary of Champion REIT through receiving listed shares in lieu of cash for their rental payment in April 2020, Champion REIT increased 4,805,410 shares of the Company, in the sale price of HK$4.25 per sale share on September 24 2020. Such shares will account for approximately 0.466% of the Company's enlarged issued share capital. Upon completion of the transaction, Champion REIT's shareholding in the Company will increase to 1.25%. The Group expects to receive net proceeds of approximately HK$20.4 million from the transaction, which will be offset by the rental payment. As the largest tenant of Langham Place Office Tower Property which is owned by Champion REIT, it would strengthen the collaboration between Champion REIT and the Company. This strategy helps facilitate the building of Langham Place Office Tower Property as a prominent one-stop healthcare, beauty and lifestyle landmark, and reap the benefits of medical tourism given heightened health awareness of the public.

- End -

About Union Medical Healthcare Limited 

Union Medical Healthcare is Hong Kong's largest non-hospital medical service provider*, leveraging its core businesses of preventive and precision medicine, and committed to developing medical artificial intelligence by integrating its multi-disciplinary 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. 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, a vaccine centre Hong Kong Professional Vaccine HKPV, a comprehensive dental centre UMH DENTAL CARE, a diagnostic and imaging centre HKAI, an oncology treatment centre reVIVE, a day procedure centre HKMED, a specialty clinic SPECIALISTS CENTRAL, Hong Kong International Cardiology Center and a professional hair care centerHAIR FOREST.

*According to the independent research conducted by Frost and Sullivan in terms of revenue in 2018 and 2019 

For further information, please contact: 

iPR Ogilvy Limited 

Callis Lau / Molisa Lau / Shana Li / Ada Chew 

Tel: (852) 2136 6952 / 2136 6953 / 3920 7649 / 3920 7650 

Fax: (852) 3170 6606 

Email: umh@iprogilvy.com