Listed Companies' Announcement
ECON HEALTHCARE LIMITED
INVESTMENT IN CELL TRANSPLANTS SINGAPORE PTE LTD
The Board of Directors of Econ Healthcare Limited (the "Company" or "EHL") is pleased to announce that the Company has entered into a shareholders' agreement dated 12 August 2003 (the "Agreement") with the existing shareholders of Cell Transplants Singapore Pte Ltd ("CTS") to acquire a 19.99% equity stake, comprising 1,999,000 ordinary shares of S$1.00 each in the capital of CTS for a total purchase consideration of S$1,999,000 in cash.
The purchase consideration will be funded by the Company through internal resources and bank borrowings.
CTS is a company incorporated in Singapore with an authorised capital of S$800,000 divided into 800,000 ordinary shares of S$1.00 each, all of which have been issued and are fully paid. CTS is currently 90% owned by Dr Peter K Law (the founder of the technologies) and 10% owned by other minority shareholders. Pursuant to the Agreement, CTS's authorised share capital will be increased to S$30,000,000 and its issued and paid-up capital increased to S$10,000,000 comprising 10,000,000 ordinary shares of S$1.00 each.
The principal activities of CTS are those relating to the production of human myoblasts for Muscular Dystrophy and Heart Cell Therapy applications. It will have the sole and exclusive rights to access all technologies and patents of Dr Peter K Law in Singapore, Malaysia and Thailand.
The Company believes that the investment in CTS will benefit the strategic development of EHL's healthcare services and facilities.
The investment is not expected to have a material impact on the earnings and net tangible assets per share of the Company for the financial year ended 31 March 2003.
None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the investment.
BY ORDER THE BOARD
Lee Seng Hua
Submitted by Lee Seng Hua, Company Secretary on 12/08/2003 to the SGX