Perennial acquires 49.9% stake in eldercare operator, Renshoutang

SINGAPORE (Sept 13): Perennial Real Estate Holdings has acquired a 49.9% in Shanghai RST Chinese Medical Co, or Renshoutang, through a capital injection of RMB735.5 million ($149.7 million).

The purchase consideration - which will be satisfied through internal funds and borrowings - takes into account the existing operations and business pipeline of Renshoutang and represents 12.9 times Renshoutang's FY15 EBITDA.

Renshoutang is a private integrated eldercare company in China, with retirement, nursing and rehabilitation homes, hospital, day care centres, pharmacies and Traditional Chinese Medicine clinics operated under its two brands Yixian Eldercare and Retirement Home and Xiehe Eldercare and Retirement Home. It currently operates a portfolio of 11 eldercare facilities with over 2,400 beds, and four pharmacies each with a TCM clinic, located in Changning District in Shanghai.

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