CFA Society Singapore
SINGAPORE (Dec 20): OUE Lippo Healthcare, the former International Healthway Corporation (IHC), says the Shanghai courts had rendered a first instance judgment in favour of Weixin Hospital Investment Management (Shanghai) Co. regarding claims to two subsidiaries under IHC.
Announced on Feb 22, the claims were against Shanghai Yi Lin Medical Management Consulting Co and Wuxi New District Phoenix Hospital Co by Weixin, a company controlled by David Lin Kao Kun.
Weixin had sought an order for Shanghai Yi Lin to transfer the shares in Wuxi to Weixin. Among other things, Weixin alleged there was a share transfer agreement between Shanghai Yi Lin and Weixin, as well as an alleged commitment letter provided by the then-shareholder and legal representative of Shanghai Yi Lin which purportedly recognised Lin as the beneficial investor for Wuxi Co and Shanghai Yi Lin.
On or around Dec 13, a judgment in favour of Weixin was issued by the Shanghai courts.
In a filing on Wednesday night, OUE Lippo Healthcare has been advised by its counsel in China there is a good chance that the judgment will be reversed on appeal. Once the appeal is filed, the judgment will have no effect and Weixin cannot be enforced.
OUE Lippo Healthcare says it has given instructions to the counsel to file and prosecute the appeal.
Shares in OUE Lippo Healthcare last traded at 12 cents.