JAKARTA (TheInsiderStories) – OUE Lippo Healthcare (OUELH), unit of Indonesian conglomeration firm Lippo Group and China Merchants Group (CMG) has entered into an agreement with China Changjiang National Shipping Group Co., to establish a joint venture will operate its first hospital in Shanghai, the company said in a statement on Tuesday (03/07).
Lippo now has one hospital and 10 clinics in China, 12 hospitals in Japan, four hospitals in Myanmar,100 clinics combined in Singapore and in Vietnam.
Under the agreement, the company with CMG will hold a 51 per cent stake in the multi-million dollar new joint venture company. The Shanghai Changhang Hospital, which is currently managed by Changjiang is located in the Pudong New District area of Shanghai.
Lee Yi Shyan, chairman of OUELH said: “The rapidly growing healthcare market in China is an opportunity for us to bring the renowned Lippo healthcare experience to a wider population. The complementary partnership with China Merchants Group brings together our international healthcare expertise and their deep local market knowledge.”
Previously, Chinese state-owned conglomerate CMG has agreed to a US$1 billion deal with Lippo for the construction of health facilities in China. The deal is part of Riyadi family company’s plan to expand its hospital business in Asia.
The agreement followed the meeting of CMG Chairman Li Jianhong with Mochtar Riady, Chairman of Lippo Group in Hong Kong in 2017. Riyadi is looking forward to join hands with CMG in terms of health, insurances and other health services.
Recently, Lippo invested $44 million in Chinese giant internet company Tencent Holdings Ltd. through shares and equity-linked notes. Tencent, who owns China’s leading social media application, WeChat, is the second most valuable company in Asia. The investment would be made through its Hong Kong subsidiary and would contribute to the group’s digitalization efforts.
CMG is a leading state-owned conglomerate based in Hong Kong, under direct supervision of State-owned Assets Supervision and Administration Commission of the State Council. CMG, founded in the Self-strengthening Movement in 1872, is a pioneer in China’s national industry and commerce.
The company set up the first merchant fleet, the first Chinese bank, the first Chinese insurance company and others, playing an important role in modern China. In 1978, the company opened and developed Shekou Industrial Zone, the first zone in China open to the world, and launching China Merchants Bank and Ping An Insurance Company, the first joint-tock Chinese bank and insurance company respectively.
CMG is a conglomerate with three business platforms of industry, finance, capital investment and operating. As for industry platform, CMG covers ports, toll roads, shipping,logistics, zone development, real estate, offshore engineering and trade. CMG actively participates in the national strategy “The Belt and Road”, owning 50 ports in 19 countries and districts.
Meanwhile Lippo, which operates 32 hospitals in Indonesia under PT Siloam International Hospitals Tbk (IDX:SILO) is one the largest healthcare group in Southeast Asia. In 2016, Private Equity firm CVC Capital Partners acquired a 15 percent stake in the company for $165million.
Lippo Group is a pan-Asian investment holding company with investments in real estate, department stores, retailing, financial services, news media, telecommunications, hospitality, healthcare, and IT services.