CHA Healthcare attracts $109 mn from STIC Investments

CHA Healthcare Co. CI

South Korea’s STIC Investments is set to invest 150 billion won ($109 million) in CHA Healthcare Co., a subsidiary of Kosdaq-listed CHA Biotech. According to industry sources on Tuesday, STIC Investments’ Credit Division has signed a memorandum of understanding (MOU) to fund CHA Healthcare, with plans to establish a project fund for its investment.

CHA Healthcare is expected to use the investment to repay existing financial investors and support business operations.

Mirae Asset Management invested 110 billion won in CHA Healthcare’s convertible preferred shares (CPS) in 2017.

Initially, Mirae aimed to exit through an initial public offering (IPO) of CHA Healthcare, but there was no progress.

Last year, Mirae successfully exercised a put option on half of its shares, retrieving over 70 billion won.

At that time, the shares were purchased by an investment consortium formed by Daishin Securities, IMM Investment, and Nexturn Bioscience.

Mirae Asset Management plans to exercise the put option on the remaining shares this year.

CHA Healthcare is expected to repay Mirae’s investment once the funding from STIC Investments is finalized.

CHA Healthcare was established in August 2013 as a spin-off from stem cell research and development firm CHA Biotech. CHA Healthcare primarily operates hospitals and aims to go public as early as next year.