Fosun Pharma plans to spend CNY 1 billion to acquire a private oncology medical center in Singapore

Recently, Fosun Pharma is planning to incorporate OncoCare, one of the largest private oncology medical centers in Singapore.

On the evening of June 6, Fosun Pharma announced that its holding subsidiary Fosun Pharma Pte. plans to invest no more than SGD 218 million (equivalent to CNY 1.054 billion) to acquire a total of 60% of the shares in OncoCare held by SolidSuccess, SMS and three holding doctors.

According to the announcement of Fosun Pharma, OncoCare was established in March 2007 and registered in Singapore. Currently, OncoCare is one of the largest private oncology medical centers with the largest number of local oncologists in Singapore. Up to now, OncoCare has 7 clinics in major private medical centers in Singapore, including the only private women's oncology medical center in Singapore.

After auditing, as of December 31, 2021, OncoCare's owner's equity was SGD 10.19 million, or approximately CNY 49.26 million. According to this transaction, the 100% stake in OncoCare is valued at CNY 1.76 billion.

The high premium acquisition is mainly due to OncoCare’s outstanding performance: In 2021, OncoCare achieved operating income of SGD 88.08 million (CNY 426 million) and net profit of SGD 17.55 million (CNY 84.84 million); In the first quarter of this year, OncoCare realized business Revenue was SGD 23.24 million and net profit was SGD 4.78 million, equivalent to CNY 112 million and CNY 23.11 million respectively.

From the perspective of performance, the premium rate of this acquisition is not high. OncoCare's acquisition valuation is about 4 times its operating income last year and 20.7 times its net profit.

After the acquisition, OncoCare will be included in the scope of the consolidated statement of Fosun Pharma. Fosun Pharma said that after the completion of this transaction, it will expand the Group's medical and health service business in Southeast Asia, and will help to improve the Group's comprehensive solution capabilities in the field of tumor treatment.