SINGAPORE: Fullerton Healthcare said it has agreed a settlement with two of its co-founders, in a move that will enable the Singapore-based regional private healthcare group to complete its merger proposed by buyout firm RRJ Capital, its main creditor.
Two of Fullerton’s shareholders and directors Michael Tan and Daniel Chan have withdrawn a petition filed in January this year to wind up the company, Fullerton said in a statement on Tuesday (Jul 19).
Tan and Chan are co-founders of Fullerton along with David Sin, the company’s group president.
The settlement will make way for Fullerton to complete the merger that “involves a cash injection of S$350 million and a loan arrangement, as well as a new corporate structure”, said the company, which has more than 500 clinics in eight countries.
Last year, Fullerton Healthcare had sought bids for a sale of the company in a process that had attracted private equity firms in a potential deal that valued it at about US$1 billion before the dispute scuppered the sale process, sources said.
“With the amicable settlement, Fullerton Health can embark on a new chapter of growth, with a stronger balance sheet and a new corporate structure to pursue post-pandemic growth opportunities,” Board Chairman Michael Lim said.
The statement that included comments from Tan and Chan, said the two co-founders will step down from Fullerton’s board and all positions once the merger is completed. Fullerton expects the merger to be concluded “in the coming weeks”.
Founded in 2010, Fullerton has expanded from 11 clinics in Singapore to having a presence in nine markets including China, Indonesia and the Philippines, according to its website.
Sin Capital Group, controlled by Sin, is Fullerton’s largest shareholder.