Adrian Cheng takes stake in medical firm

Business | Victor Zhong 20 Apr 2021

Union Medical Healthcare (2138) is to sell 29.64 million shares to New World Development (0017) chief executive Adrian Cheng Chi Kong and private investment fund Aspex Master Fund at HK$7.80 apiece.

The net proceeds, approximately HK$231 million, will be used for the expansion of the clinic network in Hong Kong and the Greater Bay Area, mergers and acquisitions and general corporate purposes, according to a UMH's exchange filing.

Such shares will account for approximately 2.77 percent of the UMH's existing issued share capital and approximately 2.69 percent of its enlarged issued share capital immediately following the placement.

Eddy Tang, chairman, executive director and chief executive officer of UMH, said: "The group is honored to introduce Dr Cheng Chi Kong and Aspex Management as its shareholder. Dr Cheng has extensive experience in the real estate and retail industries while Aspex has an excellent track record in investment. This will strengthen the group's shareholder base and increase its public float."

The non-hospital medical service provider's share price jumped 10.42 percent to HK$8.48 yesterday on the news.

UMH also provides medical aesthetic services as well as wellness and beauty services. On April 14, it announced it would acquire 51 percent of a company operating a physiotherapy center in Hong Kong.

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